Crown Paints to Open New Factory in Dar es Salaam and Depot in Dodoma to Boost Tanzania Expansion

Crown Paints plans to open a new factory in Dar es Salaam and a new depot in Dodoma as it seeks to strengthen its presence in Tanzania and drive future growth.

The plans emerged in the company’s latest financial disclosures, which show that Tanzania remains a key market despite a significant impairment charge recorded during the year.

Management expects Crown Paints Tanzania Limited (CPTL) to continue growing over the next five years, supported by expansion projects and changes in its business model.

The company plans to establish a new factory in Dar es Salaam and a depot in Dodoma to improve distribution and bring products closer to customers.

Crown Paints has already opened a new warehouse and showroom in Dar es Salaam.

The warehouse helps reduce delivery times for dealers, while the showroom increases product visibility in the market.

The company also intends to work directly with dealers who previously operated through distributors, a move expected to attract more customers and increase sales.

Sales Expected to Rise

Management projects sales volume growth of 18% in 2026, followed by an average growth rate of 9% between 2027 and 2030.

Revenue is expected to grow by 16% in 2026 and average 10% annually during the forecast period.

The company attributes the expected growth to increased construction activity, stronger marketing campaigns, painters’ training programs, and improved market awareness.

According to management projections, Tanzania’s construction sector is expected to continue expanding in the coming years, creating more demand for paint products.

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Crown Paints Increases Investment in Tanzania

During the year ended December 31, 2025, Crown Paints injected an additional Ksh 791 million into its Tanzanian subsidiary.

The investment increased the company’s total stake in Crown Paints Tanzania Limited to Ksh 1.56 billion, up from Ksh 773 million in 2024.

The Tanzanian subsidiary remains the largest investment among Crown Paints’ regional operations in East Africa.

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Ksh 806 Million Impairment Charge

Despite the growth plans, Crown Paints recorded an impairment loss of Ksh 806 million on its Tanzanian subsidiary during the year.

The impairment reduced the subsidiary’s carrying value from Ksh 1.05 billion to a recoverable amount of Ksh 240 million.

The company also booked impairment losses of Ksh 103 million for Regal Paints Uganda Limited and Ksh 5 million for Crown Paints Rwanda Limited.

Overall, Crown Paints recorded additional impairment provisions of Ksh 914 million in 2025, compared to Ksh 150.3 million in 2024.

Uganda Business Targets Strong Recovery

Regal Paints Uganda Limited is also expected to post stronger results in the coming years.

Management forecasts revenue growth of 25% in 2026 and 9% in 2027. Between 2028 and 2030, revenue is expected to grow at an average rate of 15% annually.

The company expects operating expenses to decline as a percentage of revenue while maintaining gross margins at around 32%.

Management believes improved cost control, stable inflation, and continued demand for decorative and automotive paints will support growth.

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Crown Paints plans new factory in Tanzania as it expands its regional growth strategy. PHOTO/Pesa Wall.