Leader in power control sector in Kenya discusses the sector

Saleem Abdulla, Managing Director of Sollatek Electronics talks about the power control sector and the renewable energy in Kenya.

Let’s talk about the region, which you cover. Please tell us about the East African region. How would you describe and assess your sector? We can then move on to Kenya more specifically.

We are essentially in two sectors, which you could say overlap to a certain extent. We are both in the electric and electronics sector, as well as the renewable energy sector.

As far as the region is concerned, Kenya and the East African region have been pioneers, in terms of exploiting the opportunities that exist in the solar renewable energy sector. In the power control sector, which includes the products that we actually make, i.e. the electric and electronic sector, we are pioneers: literally the first company to have ever done what we do within the region.

There is huge opportunity within a growing market, where the middle class is continuously expanding, together with purchasing power. Therefore, we see this as a very exciting area to be operating in. Obviously, there are certain countries experiencing upheaval within the region, for instance Burundi, which is currently going through some internal strife. This affects people like us, seeking to expand our operations in that country. South Sudan is not too stable at the moment either, but Kenya remains the hub, or the region’s ‘Big Brother’ as it were.

What we would really wish for is to be able to trade with greater ease across the region. We know that is something our governments have been talking about for a very long time, with very slow and limited progress so far.

That makes sense. Right, now let’s talk about the sector itself and the environment in terms of competitors. How would you describe things here in Kenya and the broader region for your company and your two sectors of business?

As I mentioned, in the power control sector we were among the pioneers, which gave us a head start of around 20 years over anybody else. We remain the market leaders and competition is very limited on that front. From our own internal estimates, we command around 80% of the market. As far as the renewable energy sector is concerned, it’s a totally different ball game. It’s extremely competitive and we don’t know for sure what portion of the market we actually command. However, we are probably among the 5 leading players in the industry.