18 October 2023
Nairobi — Chinese disposable medical device maker and seller Zhende Medical says that it will build a factory in Tatu City, the 5,000-acre Special Economic Zone (SEZ) in Ruiru, Kiambu County.
The Shangai Stock Exchange-listed firm also announced plans to invest $180 million in the country, employ 7,000 Kenyans, and export $320 million annually to its global clients.
It is also looking to expand its medical supply distribution in sub-Saharan Africa.
Zhende’s Kenyan subsidiary, FullCare Medical, will become the largest medical device manufacturer and distributor in East Africa.
The deal was announced on the sidelines of the Third Belt and Road Forum for International Cooperation in Beijing, which was presided over by President William Ruto and Ambassador Liu Yuxi, Special Representative of the Chinese Government on African Affairs.
The International Finance Corporation, the investment arm of the World Bank, has already provided $100 million in financing to Zhende for its Africa expansion.
“After extensive evaluation of markets and site locations, we have selected Kenya and Tatu City as the base for our global expansion,” said Lu Jianguo, Chairman of Zhende Medical.
“We are committed to promoting the development of Kenya’s healthcare industry, cultivating local talent and increasing cooperation between Kenya and multinational companies.”
Tatu Industrial Park, where Zhende’s first facility will be commissioned in January 2024, is the largest light manufacturing and logistics zone in East Africa, with more than 75 Kenyan, regional, and multi-national companies.
It is also Kenya’s first operational SEZ, offering low corporate taxes, import duty exemptions, zero-rated VAT, and zero withholding tax.
“Zhende Medical represents one of the most important foreign direct investments not only in Kenya’s history but in all of Africa,” said Stephen Jennings, Founder and CEO of Rendeavour, the owner and developer of Tatu City and six other new cities in Nigeria, Ghana, Zambia, and the Democratic Republic of the Congo.
“Zhende Medical is setting the benchmark for dynamic and entrepreneurial Chinese investment on the African continent.”
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