Introduction
Kim-Fay, a prominent player in the East African hygiene, tissue, and home care products market, has taken a significant step in its expansion journey. The company has secured vital funding from the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank, aimed at supporting the construction of a new facility within Tatu City, Nairobi's rapidly developing 5,000-acre Special Economic Zone.
Supporting Affordable Hygiene Solutions
The financing from Norfund and I&M Bank is strategically targeted at enabling Kim-Fay to expand its business operations, with a particular focus on offering affordable tissue paper to lower-income market segments. The new facility, which will specialize in recycled paper manufacturing using locally sourced wastepaper, is expected to commence operations by 2025.
CEO’s Vision for Growth and Sustainability
Raj Bains, Chief Executive Officer at Kim-Fay, emphasized the importance of this investment in light of the growing demand for tissue and hygiene products across Kenya and the broader East African 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 Bains. He also expressed gratitude towards Norfund and I&M Bank for their crucial support in this venture.
Tatu City: A Hub for Economic Growth
David Karimi, Deputy Country Head and Head of Sales at Tatu City, welcomed Kim-Fay's decision to establish its new facility within the Special Economic Zone. "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," Karimi stated. The collaboration with Norfund and I&M Bank further underscores Tatu City's appeal to world-class enterprises contributing to Kenya's economic progress.
Strategic Partnerships and Licensing Agreements
Kim-Fay holds a significant market position in Kenya, with licenses to manufacture, market, and distribute products for Kimberly-Clark, the global leader in consumer tissue products, known for brands like Kleenex, Kotex, and Huggies. Additionally, Kim-Fay distributes Unilever's Dove and Lux brands in the region and has recently expanded its portfolio by signing a distribution agreement with Dabur Limited, an Indian multinational renowned for its Ayurvedic products.
Norfund's Commitment to Sustainable Development
The investment in Kim-Fay aligns seamlessly with Norfund's mission to support sustainable enterprises that create jobs and enhance living standards in developing economies. William Nyaoke, East Africa Director at Norfund, expressed enthusiasm about the partnership, highlighting the significance of the upcoming wastepaper recycling facility at Tatu City as a model of sustainable business practices in the region.
I&M Bank’s Role in Financing the Expansion
Edward Burbidge, Chief Executive Officer at I&M Burbidge Capital, expressed satisfaction with the role played by I&M Bank in securing the necessary financing for Kim-Fay’s expansion. "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," Burbidge remarked.
Kim-Fay’s Product Portfolio and Market Reach
Kim-Fay's diverse product range, which includes baby care, feminine hygiene, and personal care products, serves an expanding market across Kenya, Uganda, Tanzania, and Rwanda. The company’s strategic emphasis on affordability and sustainability positions it strongly to meet the rising demand for hygiene products, driven by an increasingly health-conscious middle class.
Tatu City: A Strategic Business Environment
Tatu City continues to attract a diverse array of local, regional, and global businesses, with over 80 companies currently operational or in development. Notable enterprises include CCI Global, Heineken, Dormans, Kärcher, Cooper K-Brands, Grit Real Estate Income Group, Twiga Foods, Freight Forwarders Solutions, ADvTECH, Friendship Group, and Davis & Shirtliff. The Special Economic Zone offers significant business incentives, including VAT zero-rating, exemptions from import and stamp duties, and a favorable corporate tax rate—10% for the first decade and 15% for the subsequent 10 years.
