Listed packaging manufacturing firm Shri Krishana Overseas Plc’s new state-of-the-art facility in Kisaju, Kajiado County is set for completion by the end of this year. Phase I of operations is expected to begin by end of the year and the facility is set to commence commercial activities and enter full production in early 2026. The new facility is expected to have an annual capacity of upto 22,000 tonnes of packaging materials, which is more than 7X the current (3,000 tonnes) capacity.
The additional capacity coming online is to meet the growing demand for packaging solutions from exports of horticultural products such as avocados, herbs, mangoes and vegetables. Further, the capacity will also address demand for packaging solutions from the horticulture subsector and the Fast-Moving Consumer Goods (FMCG) sector. SKL projects more demand coming up in the FMCG sector as more firms set up manufacturing bases across Kenya and the wider East Africa region.
“The new output is critical to addressing the growing demand for sustainable packaging solutions from the horticulture exports, the floriculture subsector, and Fast-Moving Consumer Goods (FMCG) sectors. The new facility will also create job and vendor opportunities for the local community in Kisaju.” – SKL Managing Director and Founder Dr. Sonvir Singh.
The Kisaju facility is expected to be SKL’s second plant in addition to its current operation in Nairobi’s Industrial Area. According to disclosures in its investment memorandum, the company had a facility to the tune of KES 271.8 million with SBM Bank Limited, with 28% of it or KES 76.3 million expended in the development of the Kisaju facility as at the end of March 2025. The land on which the Kisaju facility sits is valued in excess of KES 65 million and forms a critical component of the firm’s asset base. The completion of the facility is set to result in an increase in the value of the assets owned by the company.
SKL HY 2025 Results Impacted by Kisaju Development
In its set of results for the half year period ended 30th June 2025, revenue declined by 5.8% year-on-year to reach KES 158.7 million. Management attributed the decline to normal volatility and seasonality of the business, and expected a reversal in the full year results in the fiscal year ending 31st December 2025.
Operating expenses declined by 9% to KES 29.9 million from KESS 32.6 million in HY 2024 on account of management initiative to curb costs. However, the decline in operating costs did not assuage the bottom line as the net profit fell to KES 2 million from KES 6 million in the previous period on account of growth in finance costs incurred from borrowing used to fund the Kisaju facility. As at the end of HY 2025, SKL’s long-term borrowings were KES 113 million, up from KES 3.5 million at the end of HY 2024, highlighting the financial requirements that have been necessitated by the new facility.
As a result, the company issued a profit warning in respect of the full year ending 31st December 2025, projecting net earnings to be 25% lower than the KES … recorded in the year ended 31st December 2024 on account of the costs of borrowing secured to fund the Kisaju development.
Listed by introduction at the Nairobi Securities Exchange on the 24th July 2025 at KES 5.90 per share, the firm closed the previous trading session on 11th Novwmber 2025 at KES 8.20 having traded 9,794 shares translating to a gross turnover of KES 80,310.80. The firm is up 39% since listing on the NSE and has a market capitalization of KES 414 million compared to a book value (shareholders equity) of KES 71 million as at the end of HY 2025.
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