Kim-Fay partners with Norfund and I&M Bank on world-class facility at Tatu City, Kenya
Investment solidifies Tatu City as the leading hub for foreign direct investment & Kenyan industrial growth
TATU CITY, Kenya, Aug. 22, 2024 /PRNewswire/ -- Kim-Fay, a leading manufacturer and distributor of hygiene, tissue, and home care products in East Africa, has secured funding from the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank for its new facility at Tatu City, the 5,000-acre mixed-use Special Economic Zone on Nairobi's doorstep.
The Norfund and I&M Bank financing will support Kim-Fay's business expansion, focusing on providing affordable tissue paper to lower-income market segments. The funds will be directed towards constructing a new recycled paper manufacturing facility at Tatu City, using locally sourced wastepaper. The new facility is expected to be operational by 2025.
"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," said Raj Bains, Chief Executive Officer at Kim-Fay. "Our new facility at Tatu City will enable us to meet this demand more efficiently while supporting our sustainability commitment through recycled materials. We thank Norfund and I&M Bank for their support in this venture."
David Karimi, Deputy Country Head and Head of Sales at Tatu City, stated, "We are thrilled to welcome Kim-Fay to Tatu City. This partnership not only strengthens Tatu City's position as a premier investment destination but also aligns with our mission to foster economic growth and sustainable development. The collaboration with Norfund and I&M Bank underscores Tatu City's attractiveness to world-class enterprises which contribute to Kenya's economic growth."
Kim-Fay is licensed in Kenya to manufacture, market, and distribute products for Kimberly-Clark, the world's leading producer of consumer tissue, with globally renowned brands such as Kleenex, Kotex, and Huggies. The company also distributes Unilever's Dove and Lux brands in the region. It recently signed a distribution agreement with Dabur Limited, the Indian multinational consumer goods company known for its Ayurvedic products.
The investment from Norfund and I&M Bank aligns with Norfund's mandate to support sustainable enterprises, create job opportunities, and improve lives in developing economies.
William Nyaoke, East Africa Director at Norfund, commented, "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."
Edward Burbidge, Chief Executive Officer at I&M Burbidge Capital, commented, "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."
Kim-Fay's product range includes baby care, feminine hygiene, and personal care products, currently serving markets in Kenya, Uganda, Tanzania, and Rwanda. The company's strategic focus on affordability and sustainability positions it well to cater to the increasing demand for hygiene products, driven by a growing middle class and heightened consumer awareness of hygiene practices.
More than 80 local, regional and global businesses are operational or under development in Tatu City's business-friendly location, including CCI Global, Heineken, Dormans, Kärcher, Cooper K-Brands, Grit Real Estate Income Group, Twiga Foods, Freight Forwarders Solutions, ADvTECH, Friendship Group and Davis & Shirtliff.
Business benefits at Tatu City SEZ include VAT zero-rating, import and stamp duty exemptions and 10% corporate tax for the first 10 years and 15% for 10 years thereafter.
About Tatu City (https://www.tatucity.com/)
Tatu City is a 5,000-acre new city on Nairobi's doorstep with homes, schools, businesses, a shopping district, medical clinic, nature areas and recreation for more than 250,000 residents and tens of thousands of day visitors. Tatu City's schools educate thousands of students daily, a range of homes suits all incomes and more than 80 businesses thrive in the country's first operational Special Economic Zone. Located 30 minutes from Westlands, Tatu City represents a new way of living and thinking for all Kenyans in a live, work and play environment that is free from traffic congestion and long-distance commuting.
Tatu City is a development by Rendeavour, Africa's largest new city builder with 30,000 acres of visionary projects in growth trajectories across Ghana, Nigeria, Kenya, Zambia and the Democratic Republic of Congo. For more information about Rendeavour, please visit https://www.rendeavour.com/.
Photo - https://mma.prnewswire.com/media/2487673/Kim_Fay_Tatu_City.jpg
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