Crown Paints Kenya Plc (NSE: $CRWN) is set to invest KES 141.24 million in the construction of a new emulsion paint binder factory alongside a plastic injection moulding plant in Machakos County, a strategic move aimed at reducing reliance on imports while strengthening local manufacturing capacity.
The proposed development will be situated in the Lukenya area of Athi River and is expected to feature modern godowns, production facilities, and supporting infrastructure. The project will comprise of two primary units, one dedicated to the emulsion binder factory and the other to a plastic injection moulding facility. According to the Environmental and Social Impact Assessment (ESIA) report, the development will occupy approximately 9.89 acres (4 hectares) of land designated for industrial use.
Furthermore, the investment is primarily intended to curb dependence on imported emulsion binder, which is a critical raw material in paint production. Currently, the company imports between 600 and 700 metric tonnes of the product each month, with nearly half of this volume consisting of water.
In light of this inefficiency, Crown Paints Kenya Plc plans to establish a local manufacturing plant in Lukenya to produce the binder domestically. This initiative is expected to significantly reduce logistics costs while enhancing supply chain efficiency, particularly given that about 80 per cent of the company’s paint products are based on emulsion binder.
In addition to binder production, the new facility will enable Crown Paints to manufacture its own plastic packaging materials. At present, the company sources plastic buckets from multiple local suppliers, a practice that has resulted in inconsistencies in design and dimensions. By internalizing the production of these packaging materials through a state-of-the-art plastic injection moulding plant, the company aims to standardize quality and improve product uniformity.
To support operations at the facility, Crown Paints plans to install solar photovoltaic systems, integrating both grid-tied and hybrid energy solutions. This approach is designed to provide a reliable and sustainable power supply for production processes while reducing energy costs and carbon emissions.
The chosen project site benefits from an average of 4 to 6 peak sunlight hours per day, making it well-suited for solar energy generation. While solar power will serve as the primary energy source, the national grid will act as a backup to ensure uninterrupted operations.
Crown Paints Posts Strong Profit Growth Amid Expansion Plans
Financially, Crown Paints Kenya has demonstrated strong performance, posting a net profit of KES 437 million in the half-year period ending 30th June 2025, reflecting a significant growth from KES 75 million recorded during the same period in 2024. Over the same period, the company’s revenue grew by 20 per cent to KES 7.4 billion, up from KES 6.2 billion the previous year.
For the full year ending December 2024, the company reported a net profit of KES 543.69 million, marking a turnaround from a net loss of KES 29.13 million recorded in 2023. This robust financial trajectory underscores the firm’s capacity to undertake strategic investments aimed at enhancing operational efficiency and long-term growth.
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