Kim-Fay East Africa, a leading manufacturer and distributor of hygiene, tissue, and home care products, has secured debt financing from the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank to enhance its regional operations.
The funds, provided by Norfund and I&M Bank, will facilitate Kim-Fay’s expansion efforts, particularly in delivering affordable tissue paper to lower-income market segments. This type of financing, known as debt funding, involves raising capital through borrowing, which must be repaid over time with interest.
With advisory support from I&M Burbidge Capital Limited (IMBC), the investment will be used to construct a new recycled paper manufacturing facility in Tatu City, Ruiru. The facility, which will utilize locally sourced wastepaper, is expected to commence operations by 2025.
Edward Burbidge, CEO of I&M Burbidge Capital, expressed satisfaction with the partnership: “We are pleased to have advised Kim-Fay on its debt capital raise and are delighted to have secured prominent, long-term financing partners for their tissue manufacturing facility.”
In 2015, Kim-Fay began developing a Sh2.5 billion plant and corporate headquarters in Tatu City. This latest investment comes as demand for tissue and hygiene products rises due to increased consumer focus on hygiene and the expansion of the middle class.
Euromonitor International reports that in 2023, high inflation has pushed consumers towards more affordable tissue and hygiene brands, intensifying competition among manufacturers and importers and leading to significant price reductions.
William Nyaoke, Director for East Africa at Norfund, stated, “This project aligns with Norfund’s mission to support sustainable enterprises, create job opportunities, and improve lives in developing economies. We are excited about our 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.”
Kim-Fay currently operates in Kenya, Uganda, Tanzania, and Rwanda, offering a range of products including baby care, feminine hygiene, and personal care items.
