Zhende Medical has announced plans to invest Ksh 26.8 billion ($189M) in Kenya’s Tatu City for the production of medical equipment.
The Chinese medical device manufacturer through its local subsidiary FullCare Medical, said the plant will help it expand its distribution of critical medical supplies in Sub-Saharan Africa.
“After extensive evaluation of markets and site locations, we have selected Kenya and Tatu City as the base for our global expansion. We are committed to promoting the development of Kenya’s healthcare industry, cultivating local talent and increasing cooperation between Kenya and multinational companies,” said Lu Jianguo, Chairman of Zhende Medical on the sidelines of the Third Belt and Road Forum for International Cooperation in Beijing.
The firm has secured Ksh 14.9 billion ($100m) from the International Finance Corporation (IFC), the investment arm of the World Bank, in order to expand its operations in the continent.
“I would like to appreciate Zhende Medical for its decision to set up in Kenya and Tatu City. I am highly encouraged by the evidence demonstrated here that the Chinese business community is fully attuned to Kenya’s immense potential as the dynamic and most highly promising destination for investment,” said President William Ruto during the signing of the agreement with Tatu City owner Rendeavour.
The firm which is a leading producer and seller of disposable medical devices expects to build the facility in Tatu City and its neighboring Oaklands development.
“Zhende Medical represents one of the most important foreign direct investments not only in Kenya’s history but in all of Africa,” added Stephen Jennings, Founder and Chief Executive Officer of Rendeavour
Zhende’s first facility which will be commissioned in January 2024, is the largest light manufacturing and logistics zone in East Africa.
Upon completion, the facility will employ 7,000 Kenyans and export Ksh 47.7 billion ($320m) annually to its global clients, as well as expand its distribution of critical medical supplies in the region.
Zhende Medical has 16 manufacturing plants across six regions in China and two overseas plants in United Kingdom and Mexico.