Kim-Fay East Africa, a leading manufacturer and distributor of hygiene, tissue, and home care products, has secured debt funding from the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank. This significant investment will support the company’s regional expansion efforts and enhance its production capabilities.
The funding will be directed towards the construction of a new recycled paper manufacturing facility in Tatu City, Ruiru, utilizing locally sourced wastepaper. This facility, expected to be operational by 2025, is set to boost Kim-Fay’s capacity to provide affordable tissue paper to lower-income market segments.
Debt financing, which involves borrowing capital to be repaid over time, will enable Kim-Fay to advance its backward integration into tissue manufacturing. The advisory support from I&M Burbidge Capital Limited (IMBC) has been crucial in securing this high-profile, long-term financing.
The investment aligns with the growing demand for hygiene and tissue products in Kenya and the broader East African region, driven by increased consumer awareness and expanding middle classes. Euromonitor International notes that high inflation has shifted consumer preferences towards more affordable brands, intensifying competition in the sector.
William Nyaoke, East Africa Director at Norfund, highlighted that this project supports Norfund’s mandate to foster sustainable enterprises, create job opportunities, and enhance lives in developing economies. The partnership with I&M Bank marks a significant step forward for Kim-Fay’s expansion and environmental sustainability.
Kim-Fay East Africa currently operates in Kenya, Uganda, Tanzania, and Rwanda, offering a range of products including baby care, feminine hygiene, and personal care items. The new facility will not only support regional growth but also contribute to the company’s ongoing commitment to sustainability and innovation.
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