Nairobi — Coca-Cola is to invest Sh3 billion in Kenya in a bid to increase efficiency and boost productivity.

This, the company said on Wednesday, would also make its products more affordable.

The company's regional director for East Africa and Islands, William Egbe said the additional investment will focus on improving production, capacity and efficiency. This, he said, would lead to efficiency and more affordable pricing.

We are extremely encouraged by the Government's decision to create a level playing by harmonising excise tax on all commercial non-alcoholic beverage at 10 per cent, Mr Egbe said in a statement. The decision to lower exercise on CSD's had encouraged Coca-Cola in Kenya to commit additional investment as part of its contribution to the country's economic development.

Part of the investment, he said, would be used by the bottlers to accelerate the company's environmental initiatives especially in managing water and solid waste. "The proposed investment programme is largely motivated by the Government's decision to lower excise tax on carbonated soft drinks (CSDs) from 15 per cent to 10 per cent at the 2004/2005 Budget.

Mr Egbe noted that inefficiencies of doing business in Kenya had been manifested through regular increases in consumer prices. "This is not a sustainable way to grow a business and it is our plan to review prices downwards on some of our packages on the very near future," he added.

Mr John Donnachie, the Nairobi Bottlers managing director said the additional investment would result in greater support for the distribution and marketing infrastructure.

"The Kenyan soft drinks industry is now better poised for growth as increased investment in distribution and marketing will lead to creation of more sales outlets resulting in development of new employment opportunities for Kenyans and enhanced revenue," said Mr Donnachie.

The rationalisation plan entails consolidating operations, previously in Machakos and Nakuru together with those of Nairobi Bottlers into one centralised point at Embakasi.