KEL Chemicals, a Kenyan company that manufactures phosphate fertilizers, water treatment products and sulfuric acid-based industrial chemicals has been bought by five individuals Jeetendra Kumar Somchand, Mahendra Kumar Somchand Haria, Pankaj Somchand Haria, Pradip Somchand Haria, and Deveshkumar Bhupendrabhai Patel.
Though the company operates across a number of sectors, the deal has been approved following an analysis conducted by the Competition Authority of Kenya which concluded that the relevant sectors will continue to experience the same amount of competitive pressure from peers.
Furthermore, the sectors in which the company operates are fundamental to Kenya’s economy. Agriculture, the largest sector, accounts for 22.4% of overall GDP and yields are highly dependent on the accessibility of quality fertilizer. The market is dominated by commodity NPKs, an area in which the company is very active.
Types of Fertiliser in Kenya
Diammonium Phosphate (DAP) represents 46% of the fertilizers traded locally. Urea, Calcium Ammonium Nitrate (CAN), NPK 23-23-0, and NPK 17-17-17 represent 23%, 13%, 7%, and 5% of the market, respectively. The target mainly manufactures commodity NPK fertilizers.
KEL Chemicals: market share by sector
The chemicals sector contributes 6% of the national GDP and about 11% of manufacturing GDP. The industry is diverse and produces chemicals for fertilizers and pesticides, water treatment, mining, manufacturing, cement, timber and paper, mineral fuels, hydro energy and metal processing.