Kenya, a key hub of the African economy.
Looking out over Nairobi’s major arterial roads, nearly 80% of the vehicles in traffic are used cars imported from Japan. Toyota, Nissan, Honda—so many, in fact, that the scene feels almost indistinguishable from Japan itself. In this “Japanese car powerhouse,” one Japanese company has long been supporting mobility at ground level.
That company is Bando Chemical Industries, Ltd., a leading belt manufacturer celebrating its 120th anniversary in 2026.
Today, Bando Chemical is taking a bold step beyond the conventional Africa business model of “routing through the Middle East, via Dubai.” Instead, the company has registered a local branch in Kenya and committed to holding its own inventory on the ground. Why would it take on such risk? Behind the decision lies a manufacturer’s urgent desire to improve its “market resolution”—to truly see and understand the market.

The Frustration of a Market That “Sells, but Cannot Be Seen”

For many global companies, the standard approach to African markets is via Dubai. Products are shipped through the logistics hub and sold through local distributors. It is efficient and minimizes country risk. Bando Chemical once followed this model as well.
However, as sales grew, a fundamental challenge emerged.
“We felt frustrated by the low resolution of the market,” recalls a Bando Chemical representative.

Comment from Bando Chemical:
“Once we sold our products to the distributor in Dubai, they effectively left our hands. We had no visibility into who in Kenya was buying which belts, and for what purpose. It was a complete black box. Sales were growing, but we couldn’t feel the real pulse of the local market. That created a strong sense of crisis—we knew we wouldn’t be able to respond to future changes this way.”

The ‘Team Toyota’ Moment That Confirmed Demand for the Real Thing

That sense of urgency turned into conviction at the Auto Expo Nairobi, a major automotive aftermarket trade show. Bando Chemical exhibited jointly with fellow Japanese auto parts manufacturers JTEKT and Denso under the banner of “Team Toyota.”
Their booth was crowded every day with local buyers and mechanics. They voiced clear and urgent demands:

• “We want the same quality as genuine Japanese parts.”
• “We’re tired of counterfeit products.”

The message was unmistakable: the market was hungry for authentic Made in Japan quality.

Choosing Branch Registration to Capture the Demographic Dividend

So how could Bando Chemical make this “invisible market” visible and respond to that demand? The answer was deeper localization.
The company upgraded its presence from a representative office, focused mainly on information gathering, to a fully registered branch capable of conducting sales and import operations—and began holding inventory locally.
This move comes with added burdens, including corporate tax and VAT compliance. Even so, what drove the decision was Kenya’s overwhelming potential: its demographic dividend.
Comment from Bando Chemical:
“Before, he was in a position of ‘asking the distributor.’ Now, with inventory under our control, he can proactively design sales strategies himself. Having weapons—in this case, inventory—created both responsibility and confidence.”

How an Extra Step in the Warehouse Builds the Brand

For logistics, Bando Chemical selected MOL Logistics (Mitsui O.S.K. Lines Logistics) as its partner, introduced through JETRO.
At MOL’s Nairobi warehouse, operations go beyond simple storage. Just before shipment, products undergo value added logistics such as repacking into Bando branded cases and labeling.
Bulk imported products are carefully finished one by one to match local orders before delivery. This meticulous process plays a key role in reinforcing brand trust.
Comment from Bando Chemical:
“With MOL’s professional inventory management, product safety is assured, and they also handle these processing tasks. That peace of mind allows us to concentrate our resources on offensive activities like sales and marketing. Compared to before, our market resolution has improved dramatically.”

From Kenya to All of East Africa

With the fog lifted and visibility improved, Bando Chemical is already looking beyond Kenya to Tanzania, Uganda, and the broader East African region. The Nairobi inventory base is envisioned as a hub to accelerate regional expansion.
By stepping into an “invisible market” and raising its resolution through direct engagement, Bando Chemical’s challenge is emerging as a model of success in African business—one that may serve as a guiding light for many Japanese companies to follow.

Editor’s Note

In preparing this article, we were deeply impressed by the passion of the Bando Chemical team.
At MOL Logistics Nairobi Branch, we provide safe and reliable warehouse solutions for companies seeking to hold inventory locally. In addition to storage, we also support value added logistics services such as repacking and labeling, helping clients strengthen their businesses from the logistics side.

For companies looking to improve their market resolution in Africa, we welcome you to reach out to us.