Kim-Fay, a manufacturer and distributor of baby care, feminine hygiene and household products in East Africa, has secured Sh2.5 billion in debt funding from the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank to expand its business in the country.
The funding will be used to establish a new recycled paper manufacturing facility in Tatu City, which is expected to be operational by 2025. This facility will focus on providing affordable tissue paper to low-income market segments.
“This investment comes at a crucial time as the demand for tissue and hygiene products continues to grow in Kenya and the wider East-Africa region. Our new facility at Tatu City will enable us to meet this demand more efficiently while supporting our sustainability commitment through recycled materials," said Raj Bains, chief executive officer of Kim-Fay.
William Nyaoke, Norfund's East Africa director, noted that the project reflects the company's commitment to promoting sustainable business practices and economic growth in the region by supporting sustainable enterprises and improving lives in developing countries. The partnership is expected to create employment opportunities for up to 500 people.
"We are excited about this partnership with I&M Bank to finance Kim-Fay’s expansion and the development of a state-of-the-art wastepaper recycling facility at Tatu City. This project is a testament to our commitment to fostering sustainable business practices and economic growth in the region," he said.
Kim-Fay is licensed in Kenya to manufacture, market, and distribute products for Kimberly-Clark, including brands such as Kleenex, Kotex, and Huggies. They also distribute Unilever's Dove and Lux brands.
The company offers baby care, feminine hygiene, and personal care products in Kenya, Uganda, Tanzania, and Rwanda, focusing on sustainability to meet the increasing demand for hygiene products driven by a growing middle class and increased consumer awareness.
"We are pleased to have advised Kim-Fay on its debt capital raise and are delighted to have managed the process to secure high-profile, long-term financing partners for the Tatu City tissue manufacturing facility,” Edward Burbidge, Chief Executive Officer at I&M Burbidge Capital said.
Developed by Rendeavour, Africa's largest new city developer, Tatu City is a 5,000-acre new city on the outskirts of Nairobi with homes, schools, businesses, a shopping district, a medical clinic, natural areas, and recreational facilities for more than 250,000 residents.
Business benefits at Tatu City SEZ include zero VAT, import and stamp duty exemptions, and corporate income tax at 10 percent for the first 10 years and 15 percent for 10 years thereafter.
