October 2, 2024
Norfund and I&M Bank have partnered to finance Kim-Fay East Africa Limited’s new recycling facility in Nairobi. This investment will create jobs, reduce waste and strengthen Kim-Fay’s position as a leading player in hygiene and household products in East Africa.
Norfund has invested USD 5.5 million in the form of a senior loan to Kim-Fay to support the construction of a new recycling facility. This loan, combined with financing from I&M Bank, is an important strategic step for the company.
Kim-Fay is heavily reliant on importing virgin paper, which they process and sell in their East African markets. With the new recycling facility, expected to be completed by 2025, the company will use recycled wastepaper sourced from Kenya in the production of products. This is a significant step in the direction of a circular economy whilst reducing both import dependency and environmental impact.
Creating local jobs
The company aims to create around 300 permanent jobs in connection with the recycling facility. About 100 will be located at the facility, while the rest of the jobs will be generated through the collection and transport of wastepaper and other support functions.
“We are excited about this partnership with I&M Bank to finance Kim-Fay’s expansion and development of a state-of-the-art wastepaper recycling facility in Nairobi. This project aligns perfectly with Norfund’s mandate to support financially and environmentally sustainable and scalable enterprises in developing economies to create job opportunities for our young people and improve lives.”
William Nyaoke, Director in East Africa at Norfund
Expanding the access to affordable hygiene products
One of the goals of Kim-Fay’s expansion is to make important household products such as toilet paper, baby wipes and diapers affordable to lower-income groups. The demand for hygiene products is rapidly increasing, driven by a growing middle class in the region.
A milestone for Kim Fay
Kim-Fay primarily operates in Kenya but also exports to Uganda, Tanzania, and Rwanda, and continues to expand its presence in East Africa.
Kim-Fay’s CEO, Raj Bains, expresses great satisfaction with the investment:
“We’re thrilled about Norfund and I&M Bank’s investment, which will facilitate the development of the reverse integration facility which will pave the way for Kim-Fay to enter a major sub-segment in the industry. We extend our gratitude to all stakeholders who contributed to this transaction, with special thanks to IMBC for their crucial support. This milestone represents a significant step toward transforming wastepaper, that would otherwise be discarded as garbage, into value added tissue paper and establishing a fair and transparent circular economy that will benefit all stakeholders, including bringing a very good product at an affordable price to the market.”
