Proctor East Africa targets Kenyan cereals market with $20m factory

Proctor East Africa targets bigger breakfast stake with Sh2 billion factory

Food processing firm Proctor & Allan East Africa Photo:Courtesy Food processing firm Proctor & Allan East Africa is angling for a bigger pie of the ready-to-eat cereals market with the completion of a Sh2 billion factory.

The plant, which is based in Limuru town, produces breakfast cereals, oats and pre-cooked fortified flour as the company moves to fight off growing competition from multinationals.

Proctor & Allan East Africa Chief Executive Officer David Kamau told Weekend Business that the construction of the new plant is driven by the need to satisfy growing demand in the region and changing lifestyles.

“This is to meet market demand,” he told Weekend Business, adding that there is also growing middle class and Kenyans looking for convenient food offerings. “Mothers countrywide want to prepare a meal for the family in the shortest time possible.”

Mr Kamau said more Kenyans are now consuming breakfast cereals and pre-cooked meals, a demand that has also attracted more multinationals such as Weetabix, Pioneer Foods and Kellogg’s into the market. The demand for ready-to-eat cereals has been growing in line with Kenya’s upgrade to a middle-income status when the country rebased its economy in 2014.

The breakfast cereals market alone is estimated to be worth about Sh2 billion annually, said.

The new plant has increased the firm’s production capacity to seven tonnes per hour and created additional jobs. The company is recruiting wholesalers to reach more consumers, who might be out of reach of supermarkets where these products are currently stocked.

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