Samsung abandons plan for assembly plant in Kenya

NAIROBI, KENYA: Electronics maker Samsung has abandoned plans to put up an assembly plant in Kenya citing failure by Government to put in place mechanisms that would protect local manufacturers from cheap electronic imports.

The Korean firm had in the past said it planned to build a plant that would assemble television sets, laptops and printers, which would service the East and Central African regions. The plant was expected to be ready in 2014 but the company went silent on the plans.

Sung Yoon, Samsung Electronics chief executive for Africa on Monday said while the Kenyan and regional market offered the firm good opportunities for growth given the adaption of technology, locally manufactured products would be overrun by cheap imports. The country does not charge import taxes on electronics such as mobile phones and laptops, a move that was expected to deepen use of technology. These, Yoon noted, would easily overrun locally made electronics.

“Building a local assembly plant depends on how the Government will protect these investments… there are many products that are coming in without paying the required duties and taxes,” said Mr Yoon, who spoke in Nairobi during a Samsung summit for its local partners.

“We do not have plans for a plant at this time.”