Financial Standard - Business News
General Electric to invest billions in Kenya
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Last Updated on June 5, 2007, 12:00 am
By Kenneth Kwama

Safaricom is a giant by regional standards, but it took all of six years to get that way. Now, barely two years after opening their first corporate office in Kenya, General Electric — the world’s second largest company — is planning to announce the creation of what could be the region’s biggest company in one massive investment.

This follows an act daring in the first quarter of this year by a committee set up to investigate possible areas of investment in Africa. A few months ago the committee approved the setting up in Kenya of GE’s largest and most capital-intensive venture in the continent, marking a turning point in the company’s investment policies.

Last week, GE’s President for Africa region, Mr Yibrah Tesfazghi, confirmed that GE, previously hesitant to invest in Africa because of "instability and insecurity", will announce plans to establish a multi-billion shilling manufacturing plant in Kenya by end of this year.

"The plan is to set up a multi-functional manufacturing unit that can churn out a number of products," Tesfazghi says.

"We are still looking at possibilities, but right now, the plan is to set up a unit that will manufacture health imaging equipment and locomotive parts." The planned factory is expected to be operational within the next three years.

Huge investment

GE sold its advanced material business for $3.8 billion (Sh258 billion) last year. Part of the company’s investment in Kenya, is expected to come from these proceeds as the company said it would reinvest this capital into faster growth platforms, including Africa.

"We have not chosen the (factory) site yet, but we are looking at three locations," says Tesfazghi, an Eritrean national. "We want to set up in a place with good transport network, stable energy supply and where we can easily access the Mombasa port because most of the materials to be manufactured will be for export."

GE is a diversified technology, manufacturing and services company. In countries where it operates, its businesses are conducted through a direct presence, joint ventures, strategic alliances and a wide network of distributors. The company has six strong businesses, which span infrastructure, healthcare, commercial finance, GE money and industry.

Last year, the company had consolidated revenues of $163 billion (Sh11 trillion) about seven times Kenya’s Gross Domestic product for the same period. Only oil giant Exxon Mobil earned more last year ($378 billion) and is larger by market capitalisation.

Through expansion, GE says that it expects its businesses to achieve over ten per cent earnings growth most years, and is projecting long-term returns at 20 per cent. It is the search for these aggressive earnings figures that has brought GE knocking at Kenya’s door with a proposal that will shock foreign direct investment statistics noticeably in the next three years.

New technology venture

Tesfazghi declined to reveal details or figures, but the Kenya Investment Authority (KIA) confirmed that negotiations for GE to set up a major venture in the country are at an advanced stage. Although the details of the amount to be invested are closely guarded, Tesfazghi laughed off a suggestion of Sh100 billion from this writer as low.

"I can’t tell you exactly how much it is because the final decision has not been made," he laughed. "It could be bigger than that because we are the biggest company in the world. We can build a country within one month because we have the resources. For now, just know that the amount is big because when we say we want to invest, we invest."

Last year, KIA records show, there were 70 foreign direct investments in Kenya injecting about Sh80 billion in capital into the economy. The firms employed a total of 16,940 new people, including 434 foreigners and 16,506 locals. GE’s entry will dwarf all these projects in capital terms.

Since the beginning of this year, GE has announced almost $15 billion of industrial acquisitions, including that of a US company called Abbott, which specialises in the healthcare diagnostic equipment business.

This year, GE Healthcare is expected to have $20 billion in revenues and $4 billion in operating profit. GE has particularly been keen to expand the health wing. The company operates medical imaging and information technologies (like ultrasound machines), medical diagnostics and patient monitoring systems, disease research, drug discovery and bio-pharmaceutical manufacturing technologies.

The technology being pioneered is dedicated to early detection of diseases and helping physicians tailor treatment for individual patients.

Two years ago, the company acquired Amersham — then the world leader in the manufacture of equipments used for early detection of disease. The $11-billion deal was GE’s biggest industrial acquisition and gave it the capability for molecular diagnostics. GE has also acquired Biacore International, maker of medical research instruments, for $436 million within the last two years.



Great market potential

If the Kenyan deal goes through, it will rank as the single-biggest investment by a multinational in East and Central Africa. It will also provide thousands of job opportunities and boost Government tax revenue by an estimated Sh10 billion annually.

GE’s proposed factory is set to produce materials for Africa and expand GE’s market in the region. The company’s railways division, which is expected to services its regional customers with products manufactured in the new plant, provides a broad portfolio of rail technology solutions. The division has contracts with major rail utilities in Egypt, Cameroon, Congo, Gabon, Namibia, Zambia, Tanzania, South Africa and, recently, Kenya.

GE Healthcare, the company’s medical division, is already a significant player in Egypt, Tanzania, Zimbabwe, Namibia, Angola, Nigeria, Mozambique, Botswana, Uganda and South Africa where it supplies a large network of hospitals and health institutions with medical imaging equipment amongst other services.

GE’s other bets in the region are already paying off in health imaging and aviation, where it is leveraging new ties with hospitals and airline companies eager to replace old technologies with new ones. Currently, the company’s list of local customers includes Kenya Railways, Kenya Airways and the Aga Khan Hospital. The GE Rail team has been supporting Kenya Railways to improve productivity and efficiency by helping the firm to manage their aging locomotive fleets. GE Rail helped Kenya Railways reduce maintenance costs and increase its performance.

"After the locomotives were overhauled, availability improved from 48 to over 90 per cent and the amount of cargo they were able to transport skyrocketed from 2.8 million to 5.5 million metric tonnes," says GE.

The aviation arm, GE Aircraft Engines, is the world’s leading manufacturer of jet engines for civil and military aircraft, including engines produced by CFM International, a joint company of Snecma of France and GE.

Most foreign direct investment in Kenya is from countries like the United Kingdom, India, China, Germany, South Africa and the US. It is usually concentrated in the service, manufacturing, tourism and agricultural sectors.

"Since the enactment of the new investment Act, the authority has witnessed the entry into the Kenyan market of major multi-national companies such as Nokia," says KIA.

GE’s entry into Kenya comes as other investors lament bottlenecks like high power costs, delays in processing of various permits and exemptions and insecurity. In the past, the company has been able to establish and grow new markets by using its size and unique multi-business structure to build early leadership in the trends that shape future business.

"We believe that healthcare would benefit from demographic forces and Africa is a great market for us," Tesfazghi says. "We know we will be able to generate good returns in future and that is why we are investing."

operational in three yrs? too good to be true? u r opinions needed. and any other invest to be done in kenya.

Go on Kenya, you have a good future ahead of you. I think the economic growth in Kenya is a lot more stable and broad-based than other African nations, though it may be not as high.

I'm sure if Nigeria was more stable the factory would have been located there. I think out of the more developed SS African countries with larger populations Kenya is the most stable (exc SA).

Be aware though, most big-scale developments in Africa never seem to come in fruition- in the last few yrs I have heard of the following in Ghana- giant paper factory, car assembly, TV assembly, manufacturing park- none of them came true and I havent heard anything since.

oh yes i can tell of the story for kenya but it has never been of such a high profile company like GE. if this thing fully goes through then it will be like a trail blazer and i would expect more multi national companies to follow. all we can do is keep our fingers crossed

It is not everyday that what was till recently the worlds biggest company decides to invest in a manufacturing plant. I juts pray this is not false hope. Many an ivestor has been frustrated by lack of infrastructure, corruption and bureaucracy. How is the power situation in Kenya? (I mean electric power btw!)

Be aware though, most big-scale developments in Africa never seem to come in fruition- in the last few yrs I have heard of the following in Ghana- giant paper factory, car assembly, TV assembly, manufacturing park- none of them came true and I havent heard anything since.
but all these came truth in nigeria.

but all these came truth in nigeria.


Ok. I want names of the following

1)car assembly plant
2) Television plant
3) manufacturing park
4) Giant paper factory

...that have been constructed in Nigeria over the last few years.

Go on Kenya, you have a good future ahead of you. I think the economic growth in Kenya is a lot more stable and broad-based than other African nations, though it may be not as high.

I'm sure if Nigeria was more stable the factory would have been located there. I think out of the more developed SS African countries with larger populations Kenya is the most stable (exc SA).

Strange coment, why would you be sure that a company would prefer to go to Nigeria over Nairobi if Nigeria was stable. Just wondered because some people on this forum seem to think that one country is better than the rest. Why is Nairobi one of only 4 cities in the world to have a UN headquaters....I respect other countries so it irks me when others seem to think that they are better than my country.

Ok. I want names of the following

1)car assembly plant
2) Television plant
3) manufacturing park
4) Giant paper factory

...that have been constructed in Nigeria over the last few years.
you are just a funny lol.you want the proof of assembly plants in nigeria?...and you shall get it.

all these is been made in nigeia.
1,computers
2,generators
3,many types of cars
4,trucks
5,tractors
6,nyundai boats and ships
7,panasonic and samsung arrived
8,just give me a break...

Strange coment, why would you be sure that a company would prefer to go to Nigeria over Nairobi if Nigeria was stable. Just wondered because some people on this forum seem to think that one country is better than the rest. Why is Nairobi one of only 4 cities in the world to have a UN headquaters....I respect other countries so it irks me when others seem to think that they are better than my country.
it's very close to aid recipients

Great News. Kenya needs to evolve into an Industrial Economy.

Cheers My East African Brothers:banana:

it's very close to aid recipients

the office in Nairobi is UNEP United nations environmental Programme. Nothing to do with aid. it was based on the fact that nairobi was the greenest City in the sun. a model that had to be sold to the world. We have a huge and verry busy airport in northern kenya called Lokichogio. this is where all the aid flies to and is managed from. true there are a few offices in nairobi to deal with aid, but they are there because UNEP was allready there.

the office in Nairobi is UNEP United nations environmental Programme. Nothing to do with aid. it was based on the fact that nairobi was the greenest City in the sun. a model that had to be sold to the world. We have a huge and verry busy airport in northern kenya called Lokichogio. this is where all the aid flies to and is managed from. true there are a few offices in nairobi to deal with aid, but they are there because UNEP was allready there.
how could they v'e had their offices in nigeria,when it is been given nothing.

a benz manufacturing company in nigeria:http://www.anammco.com/
:http://www.daimlerchrysler.co.za/portal/portalsintegra/Modules_FE/Layout1/longC.asp?newsID=1

how could they v'e had their offices in nigeria,when it is been given nothing.

90% of the aid goes to Southern Sudan where there is war and parts of Nothern Kenya.

peugeot nigeria:http://www.peugeotnigeria.com/inform/local/

1st Abuja International Trade fair starts living up to its billing, 2nd Day, as exhibitors turn up with more products, more patrons troop in to the fair venue

Made in Nigeria Limousines drove into trade fair ground.

The 1st Abuja International Trade Fair, started living up to the promise of its organizers second day of the event as more products came to be exhibited with more patrons coming to the fair ground to do business.

Two Made in Nigeria Limousines drove in to be exhibited at the fair ground today, 6th may, 2006. The made in Nigeria Limousines, a Mercedes Benz V-booth which the makers said is the “longest V-Booth limousine in the World” and a Toyota 4-Runner Limousine version which the makers also say is the “only Toyota 4-Runner in World” was actually made in Enugu, by a company based in Enugu State of Nigeria.
http://www.nigeria.gov.ng/TradefairStandards_files/image004.jpg

The vehicles are fitted with all known luxuries like a DVD/CD player, 14inch Television and refrigerator which is powered by a solar system when the engine is switched off for energy conservation, split unit air condition for the owner’s apartment in the vehicle. Each of the vehicles are not less than 20 feet front bumper to back bumper with a claim that 30 feet length and additional specifications are realizable by the makers.
http://www.nigeria.gov.ng/TradefairStandards_files/image002.jpg

Why does every thread in this Sub Forum have to be competitive:ohno:

Why is Nigeria being more discussed than Kenya.

This is ridiculous. This thread is about a Plant in Nairobi, not an economic debate Thread.

Anyways I don't blame Naija, Popa1980 should have done some research before he made such a strange remark.

Anyways back to the Topic.

Such a move will drastically enhance Kenya's Tetiary Sector:)

he wanted to know,..but it's alright now.he saw a little bit of it.

big up kenyas!

Such a development will definitely have a big impact on Kenya's university education sector especially i field of engineering,computing and IT,Chemical and Biochemistry department will have huge demand.I personally would love to work for GE once i finish my course(Computing).judging by the sheer size of investments GE has planned,I think they are going to set up the Factory at Athi River or Embakasi.The rest of Nairobi outside the City center,is choked up by factories and residential estates.
Another result of the investment might be a new skyscraper or massive demand for office space in the new skyscrapers that are nearing completion in the city.

It is not everyday that what was till recently the worlds biggest company decides to invest in a manufacturing plant. I juts pray this is not false hope. Many an ivestor has been frustrated by lack of infrastructure, corruption and bureaucracy. How is the power situation in Kenya? (I mean electric power btw!)

Kenya does not have a power crisis at the moment unlike most of the continent. The power supply is quite reliable. Plus there are new power plants (geothermal and hydroelectric) that are U/C.

If this deal goes through, I can only imagine the effect it would have on the economy, especially the new supportive industries that normally spring up from having a major manufacturing unit producing various commodities. this means more employment opportunities for Kenyans.

The railway unit of the GE factory has really got me interested. It could mean a ready source of locomotives to improve the region's railway infrastructure (from mass rapid railway systems for Nairobi and other major cities in the region to efficient long distance railway networks spanning East Africa and beyond). This would ease the burden on the roads.:banana:

Lets go Kenya. I have always thought that kenya could be one of the AFRICAN LION ECONOMIES.:cheers:
I dont think that Ethiopia is linked with Kenya much but we better get some Railroads and highways get build to Nairobi. We should ride their wave.:hug:



:tiasd:

african lion, could i add an amen to that?

Lets go Kenya. I have always thought that kenya could be one of the AFRICAN LION ECONOMIES.:cheers:
I dont think that Ethiopia is linked with Kenya much but we better get some Railroads and highways get build to Nairobi. We should ride their wave.:hug:



:tiasd:

^^
Kenya is going to build a new highway to Ethiopia in a few months time and im certain a railway will follow soon after that. Ethiopia and Kenya will surely benefit from such an arrangement.:)

Strange coment, why would you be sure that a company would prefer to go to Nigeria over Nairobi if Nigeria was stable. Just wondered because some people on this forum seem to think that one country is better than the rest. Why is Nairobi one of only 4 cities in the world to have a UN headquaters....I respect other countries so it irks me when others seem to think that they are better than my country.

Larger market my dear friend. 120 million people. Ghana is MUCH more stable than Nigeria but many companies chose to take the risk and invest in Nigeria because of that reason. I am not Nigerian btw!

you are just a funny lol.you want the proof of assembly plants in nigeria?...and you shall get it.

all these is been made in nigeia.
1,computers
2,generators
3,many types of cars
4,trucks
5,tractors
6,nyundai boats and ships
7,panasonic and samsung arrived
8,just give me a break...

I was specifically talking about new investments over the last few years. The point being that many investments were announced in Ghana since 2004 and most of them never bore fruition.

Now thats what Iam talking about.

hey nija and poppa, this is why the nigerians should have their forum. nway i really think that if things keep going this way, there is an economic boom waiting to happen in kenya and its gonna happen sooner than we think. the hub of activites going on in the hallway of business offices in kenya is about to fully materialize and then for once in ssa africa there will be a booming economy that is not based on diamonds or oil.

1) look at the roads project both proposed and under construction, buildings under contruction and the upgrading of all the major airports to international standards.
2) the cement companies cant keep up with demand
3)6.1% economic growth rate expected to hit 7% at the end of next year
4) multinational companies investing billions of american dollars
5)the libyans are intown too to build new motels and conference centers
6) 603 billion shilling budget without any help from the damn world bank or imf
7) nairobi stock exchange trading is just on fire, kenyans are in love with thier stock exchange.
and folks ITS JUST BEGINING!!!

Hey, i think the real figure was actually 693 billion, for the budget

the stage is set for a real economic boom also kenya needs to have another major city rise up and relieve the pressure from nairobi.

Why does every thread in this Sub Forum have to be competitive:ohno:

Why is Nigeria being more discussed than Kenya.

This is ridiculous. This thread is about a Plant in Nairobi, not an economic debate Thread.

Anyways I don't blame Naija, Popa1980 should have done some research before he made such a strange remark.

Anyways back to the Topic.

Such a move will drastically enhance Kenya's Tetiary Sector:)

Interesting that a thread about kenya again turned into nigeria. And then south africans get attacked for being thread destroyers?

On a side note: I work with quite a couple of kenyans now, and must say: Friendly, beautiful people!

^^ That's all behind us all. Cheers :)

Does anyone know the Magnitude of this Plant?

Another news article on this:

General Electric moves Africa’s hub to Nairobi

Written by Jim Onyango

Young & Rubicam (Y&R) also make Nairobi their African headquarters

General Electric Company, the world’s leading producer of large and small jet engines for commercial and military aircraft, will move it’s Africa corporate headquarters from South Africa to Nairobi, company officials have said, continuing the growth of the capital as a hub for multinational business for sub-Saharan Africa.
The GE office in the capital will now be responsible for corporate-level decisions for the company’s African business, it will also spearhead the company’s hunt for new businesses on the continent, the firm’s president for Africa, Yibrah Tesfasghi, told Business Daily.

US-based GE, which also makes and supplies locomotives to Kenya, formerly ran two corporate offices in Africa, with one in Cairo, Egypt in addition to the Johannesburg office. Both the Egypt and South Africa offices will be downgraded to operational hubs.

Mr Tesfasghi said in an interview that the move is calculated at bringing the company closer to its customers and that the Nairobi office would be instrumental in the firm’s intended building of production factories in the continent.

“GE sees Kenya as a key emerging market driver of the future African economy” said Mr Tesfasghi. “We want to position this company in the heart of Africa so as to build relations with African businesses as we are planning a long stay in the continent.”

Earlier this year, global advertising firm Young & Rubicam (Y&R) made a similar move, in transferring their sub-Saharan African offices from Johannesburg to Nairobi.
At the time, the chief executive of the pan-African operation, Chris Harrison said Kenya “has the skills and talent needed to build successful service industries.” Mr Tesfasghi said Nairobi is increasingly becoming a business hub due to its developed telecommunications infrastructure and airport services.

“It’s become easier to access Europe and other parts of the world from Nairobi due to the increased flights from this area,” he said. Links between GE and Kenya Airways may have also played a role in the choice of Nairobi, as the firm manufactures and supplies some of the engines used by KQ aircraft. The national carrier leases several of its jets from General Electric Commerical Aviation Services, an airline fleet services branch, such as the Embraer 170 jets, for which GE also makes the engines.
General Electric’s African operations started in 1988 when it established its Johannesburg office, and today the company is active in more than 35 countries on the continent, employing over 600 people.

The company which also has an petroleum business arm, operates an energy service centre in Nigeria and an oil and gas business in Angola. GE’s move to strengthen its operations in Kenya comes as international oil companies and exploration finance firms, have shown increased interest in East Africa in the quest for unseen oil and gas reserves.

In addition to producing turbo machinery used in oil drilling, GE’s industrial arm deals with the manufacture of power control and security equipment. Elsewhere, the diversified firm has a healthcare division producing scanning equipment for hospitals and a media division that runs US TV networks including NBC and CNBC. GE has engineers based at Rift Valley Railways’ Mombasa facility to service locomotives.

It will now add jet engine technicians to service GE engines on local aircraft, said Mr Tesfasghi.

He said added that the company was hoping to strengthen its relations with KQ.

GE’s revenue rose to $163.4 billion in 2006 with its income capping the $ 20.7 billion mark.

^^
Good News indeed. Now we can wait for them to build the production plant in the city. My suspicions are that they want to position themselves for the windfall arising from the new railway networks planned for the region as well as Kenya's rapidly growing airlines sector.:)

but all these came truth in nigeria.

Naija, i see everything is working very well in Nigeria and many things are being produced in Nigeria from TVs, computers, many types of cars, tractors, trucks, boats etc right? And the proof to all this is "Naija's word himself". Dude you are starting to sound funny with your endless cheerleading of Nigeria's small manufacturing sector (http://www.fdimagazine.com/news/fullstory.php/aid/1452/Value_creation.html) only accounting for 5% of GDP. You can not compare Nigeria's manufacturing sector to that of Kenya which is far bigger and well established (http://www.pwc.com/extweb/industry.nsf/docid/1fed39714797c55285256ce60043afd5) employing lots of people. Tone it down and be realistic and provide some links and references to your claims and you will sound more intelligent and people will respect your comments more. No offense but you have been at it forever.....

how could they v'e had their offices in nigeria,when it is been given nothing.

What is your point..???!!!

Naija, i see everything is working very well in Nigeria and many things are being produced in Nigeria from TVs, computers, many types of cars, tractors, trucks, boats etc right? And the proof to all this is "Naija's word himself". Dude you are starting to sound funny with your endless cheerleading of Nigeria's small manufacturing sector (http://www.fdimagazine.com/news/fullstory.php/aid/1452/Value_creation.html) only accounting for 5% of GDP. You can not compare Nigeria's manufacturing sector to that of Kenya which is far bigger and well established (http://www.pwc.com/extweb/industry.nsf/docid/1fed39714797c55285256ce60043afd5) employing lots of people. Tone it down and be realistic and provide some links and references to your claims and you will sound more intelligent and people will respect your comments more. No offense but you have been at it forever..... The manufacturing sector of Nigeria should be larger than that of Kenya. https://www.cia.gov/library/publications/the-world-factbook/fields/2090.html - by examining the industries involevd.Even the 5 percent contribution to Nigeria GDP from your link surpass that of Kenya so tagged large manufacturing sector. The truth is that Nigeria is not a small nation in comparison to any in sub-saharan Africa.

Financial Standard - Business News
General Electric to invest billions in Kenya
--------------------------------------------------------------------------------
Last Updated on June 5, 2007, 12:00 am
By Kenneth Kwama

Safaricom is a giant by regional standards, but it took all of six years to get that way. Now, barely two years after opening their first corporate office in Kenya, General Electric — the world’s second largest company — is planning to announce the creation of what could be the region’s biggest company in one massive investment.

This follows an act daring in the first quarter of this year by a committee set up to investigate possible areas of investment in Africa. A few months ago the committee approved the setting up in Kenya of GE’s largest and most capital-intensive venture in the continent, marking a turning point in the company’s investment policies.

Last week, GE’s President for Africa region, Mr Yibrah Tesfazghi, confirmed that GE, previously hesitant to invest in Africa because of "instability and insecurity", will announce plans to establish a multi-billion shilling manufacturing plant in Kenya by end of this year.

"The plan is to set up a multi-functional manufacturing unit that can churn out a number of products," Tesfazghi says.

"We are still looking at possibilities, but right now, the plan is to set up a unit that will manufacture health imaging equipment and locomotive parts." The planned factory is expected to be operational within the next three years.

Huge investment

GE sold its advanced material business for $3.8 billion (Sh258 billion) last year. Part of the company’s investment in Kenya, is expected to come from these proceeds as the company said it would reinvest this capital into faster growth platforms, including Africa.

"We have not chosen the (factory) site yet, but we are looking at three locations," says Tesfazghi, an Eritrean national. "We want to set up in a place with good transport network, stable energy supply and where we can easily access the Mombasa port because most of the materials to be manufactured will be for export."

GE is a diversified technology, manufacturing and services company. In countries where it operates, its businesses are conducted through a direct presence, joint ventures, strategic alliances and a wide network of distributors. The company has six strong businesses, which span infrastructure, healthcare, commercial finance, GE money and industry.

Last year, the company had consolidated revenues of $163 billion (Sh11 trillion) about seven times Kenya’s Gross Domestic product for the same period. Only oil giant Exxon Mobil earned more last year ($378 billion) and is larger by market capitalisation.

Through expansion, GE says that it expects its businesses to achieve over ten per cent earnings growth most years, and is projecting long-term returns at 20 per cent. It is the search for these aggressive earnings figures that has brought GE knocking at Kenya’s door with a proposal that will shock foreign direct investment statistics noticeably in the next three years.

New technology venture

Tesfazghi declined to reveal details or figures, but the Kenya Investment Authority (KIA) confirmed that negotiations for GE to set up a major venture in the country are at an advanced stage. Although the details of the amount to be invested are closely guarded, Tesfazghi laughed off a suggestion of Sh100 billion from this writer as low.

"I can’t tell you exactly how much it is because the final decision has not been made," he laughed. "It could be bigger than that because we are the biggest company in the world. We can build a country within one month because we have the resources. For now, just know that the amount is big because when we say we want to invest, we invest."

Last year, KIA records show, there were 70 foreign direct investments in Kenya injecting about Sh80 billion in capital into the economy. The firms employed a total of 16,940 new people, including 434 foreigners and 16,506 locals. GE’s entry will dwarf all these projects in capital terms.

Since the beginning of this year, GE has announced almost $15 billion of industrial acquisitions, including that of a US company called Abbott, which specialises in the healthcare diagnostic equipment business.

This year, GE Healthcare is expected to have $20 billion in revenues and $4 billion in operating profit. GE has particularly been keen to expand the health wing. The company operates medical imaging and information technologies (like ultrasound machines), medical diagnostics and patient monitoring systems, disease research, drug discovery and bio-pharmaceutical manufacturing technologies.

The technology being pioneered is dedicated to early detection of diseases and helping physicians tailor treatment for individual patients.

Two years ago, the company acquired Amersham — then the world leader in the manufacture of equipments used for early detection of disease. The $11-billion deal was GE’s biggest industrial acquisition and gave it the capability for molecular diagnostics. GE has also acquired Biacore International, maker of medical research instruments, for $436 million within the last two years.



Great market potential

If the Kenyan deal goes through, it will rank as the single-biggest investment by a multinational in East and Central Africa. It will also provide thousands of job opportunities and boost Government tax revenue by an estimated Sh10 billion annually.

GE’s proposed factory is set to produce materials for Africa and expand GE’s market in the region. The company’s railways division, which is expected to services its regional customers with products manufactured in the new plant, provides a broad portfolio of rail technology solutions. The division has contracts with major rail utilities in Egypt, Cameroon, Congo, Gabon, Namibia, Zambia, Tanzania, South Africa and, recently, Kenya.

GE Healthcare, the company’s medical division, is already a significant player in Egypt, Tanzania, Zimbabwe, Namibia, Angola, Nigeria, Mozambique, Botswana, Uganda and South Africa where it supplies a large network of hospitals and health institutions with medical imaging equipment amongst other services.

GE’s other bets in the region are already paying off in health imaging and aviation, where it is leveraging new ties with hospitals and airline companies eager to replace old technologies with new ones. Currently, the company’s list of local customers includes Kenya Railways, Kenya Airways and the Aga Khan Hospital. The GE Rail team has been supporting Kenya Railways to improve productivity and efficiency by helping the firm to manage their aging locomotive fleets. GE Rail helped Kenya Railways reduce maintenance costs and increase its performance.

"After the locomotives were overhauled, availability improved from 48 to over 90 per cent and the amount of cargo they were able to transport skyrocketed from 2.8 million to 5.5 million metric tonnes," says GE.

The aviation arm, GE Aircraft Engines, is the world’s leading manufacturer of jet engines for civil and military aircraft, including engines produced by CFM International, a joint company of Snecma of France and GE.

Most foreign direct investment in Kenya is from countries like the United Kingdom, India, China, Germany, South Africa and the US. It is usually concentrated in the service, manufacturing, tourism and agricultural sectors.

"Since the enactment of the new investment Act, the authority has witnessed the entry into the Kenyan market of major multi-national companies such as Nokia," says KIA.

GE’s entry into Kenya comes as other investors lament bottlenecks like high power costs, delays in processing of various permits and exemptions and insecurity. In the past, the company has been able to establish and grow new markets by using its size and unique multi-business structure to build early leadership in the trends that shape future business.

"We believe that healthcare would benefit from demographic forces and Africa is a great market for us," Tesfazghi says. "We know we will be able to generate good returns in future and that is why we are investing."

Is this project still alive??..Anyone knows??

Some of its ventures may have been shelved due to the financial crisis. Anyway, am hoping we can hear something about this, it would be good.

the office in Nairobi is UNEP United nations environmental Programme. Nothing to do with aid. it was based on the fact that nairobi was the greenest City in the sun. a model that had to be sold to the world. We have a huge and verry busy airport in northern kenya called Lokichogio. this is where all the aid flies to and is managed from. true there are a few offices in nairobi to deal with aid, but they are there because UNEP was allready there.

THE GREENEST CITY IN THE WORLD AND AFRICA IS PROBABLY KAMPALA, NAIROBI CANT WHEN IT HAS SAVANAH GRASSLAND, STYLE UP BOY

And all in all Uganda is the biggest supporter of the Kenyan economy, this is becoz we r the biggest importers of its product.if Uganda people were poor Kenya will be all poor, so Kenya having the richest hinterland in Africa, they benefit a lot.Look before Nomi detergent powder came into Existence, Omo and Toss were the biggest on Ugandan market but when Nomi and Star soap came in Omo seriously lost market, but many people don't know that Uganda is the richest hinterland in Africa having the richest men and women in Africa coz we hav the money and we r able, look at this scenario;

"who knew that Uganda is home to richest musician in Africa competing with Nigerian artists, South African and Congolese artists but Ugandan artists get millions in their shows and Billions in Album launch's and sale outs."

This is because the government of Uganda does not realize true information about our country, guys i have not written to argue but to inform u bragging Kenyans and the other thing is thatb the ugandan govt doesnot care about their citizens that why they too rich,
Who knew that Uganda houses the richest black-men on the continent, read about our tycoons and our way of lyfe Encyclopedia.Kenyans the whites and Indians will continue to be the richest in Kenya if u dont style up.note this^^:banana:

sseki, what's the purpose of the two above posts? Not once has Uganda been brought into this discussion, that is until you came in and threw shade on Kenya's shine.... :ohno:

http://www.myspaceantics.com/images/myspace-graphics/funny-pictures/hater-free-zone.jpg
^^ ^^ ^^

Thanks Kwame. That was random!! :lol: