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. 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,” said Kim-Fay Chief Executive Officer Raj Bains.
“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,” said Deputy Country Head and Head of Sales at Tatu City, David Karimi.
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.
“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,” added East Africa Director at Norfund, William Nyaoke.
“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,” noted I&M Capital Chief Executive Officer, Edward Burbidge
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.