French energy company Schneider Electric Kenya will discontinue its manufacturing activities there, indicating challenges with local value-addition. Schneider Electric Kenya said in a statement that it had decided to transfer its switchboard manufacturing operations to another manufacturer, ACTOM Kenya Ltd.
In order to better serve the East African market, Schneider, which arrived in the nation in 2015, will continue to manage its sales, marketing, projects, services, and logistics operations out of Kenya.
The agreement will see Schneider Electric’s BlokSeT-type tested switchboards produced by ACTOM, an African producer of electro-mechanical equipment.
Schneider announced a plan to retrench about 50 people in 2018, three years after entering Kenya by purchasing Power Technics Limited, citing a challenging business environment.