Strategic Funding Of Sh2.5 Billion Is Secured By Kim-Fay For Expansion In East Africa
Posted on : Wednesday, 4th September 2024
In order to grow its business in East Africa, Kim-Fay, a producer and distributor of feminine hygiene, baby care, and home goods, has obtained Sh2.5 billion in debt financing from I&M Bank and the Norwegian Investment Fund for Developing Countries (Norfund).
By 2025, a new recycled paper production facility in Tatu City is anticipated to be operational thanks to the funding. This facility will concentrate on offering low-income market segments reasonably priced tissue paper.
The timing of this investment couldn't be more critical, given the rising demand in Kenya and throughout East Africa for tissue and hygiene goods. The chief executive officer of Kim-Fay, Raj Bains, stated, "Our new facility at Tatu City will enable us to meet this demand more efficiently while supporting our sustainability commitment through recycled materials."
The project demonstrates Norfund's dedication to advancing sustainable business practices and economic growth in the region by assisting sustainable businesses and enhancing living standards in developing nations, according to William Nyaoke, director of Norfund's East Africa division. It is anticipated that the collaboration will generate job prospects for a maximum of 500 individuals.
We are thrilled to be working with I&M Bank to fund Kim-Fay's growth as well as the construction of a cutting-edge wastepaper recycling facility in Tatu City. This project demonstrates our dedication to promoting environmentally friendly business practices and local economic development," he remarked.
With a license from Kimberly-Clark, Kim-Fay is authorised to produce, market, and distribute goods under the Kleenex, Kotex, and Huggies names in Kenya. They also distribute the Lux and Dove brands from Unilever.
The company focusses on sustainability to fulfil the growing need for hygiene goods led by a growing middle class and more consumer awareness. It sells baby care, feminine hygiene, and personal care products in Kenya, Uganda, Tanzania, and Rwanda.
Edward Burbidge, the chief executive officer of Burbidge Capital, stated, "We are delighted to have managed the process to secure high-profile, long-term financing partners for the Tatu City tissue manufacturing facility. We are pleased to have advised Kim-Fay on its debt capital raise."
Tatu City is a 5,000-acre new city on the outskirts of Nairobi, developed by Rendeavour, Africa's largest new city developer. It has more than 250,000 residents and includes residences, businesses, schools, a commercial district, a medical facility, natural areas, and recreational amenities.
Zero VAT, import and stamp duty exemptions, and corporate income tax at 10% for the first ten years and 15% for the next ten are just a few of the business incentives offered by Tatu City SEZ.
