Kim-Fay, a prominent player in the consumer tissue industry, has announced a significant investment partnership with the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank to establish a new state-of-the-art recycled paper manufacturing facility at Tatu City. This development marks a pivotal moment for the 5,000-acre mixed-use Special Economic Zone situated on Nairobi’s doorstep, underscoring Tatu City’s growing importance as a hub for sustainable and innovative business ventures.
The strategic collaboration aims to address the rising demand for affordable tissue paper products in Kenya and the broader East African region. With the support of Norfund and I&M Bank, Kim-Fay is set to build a cutting-edge facility that will focus on recycling locally sourced wastepaper to produce high-quality tissue products. The new plant, expected to become operational by 2025, will not only enhance Kim-Fay’s production capabilities but also align with its commitment to sustainability through the use of recycled materials.
Raj Bains, Chief Executive Officer of Kim-Fay, emphasized the critical nature of this investment, stating, “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.”
Tatu City’s Deputy Country Head and Head of Sales, David Karimi, expressed enthusiasm for the partnership, noting, “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, contributing significantly to Kenya’s economic growth.”
Kim-Fay, renowned for its licensing agreements with global giants like Kimberly-Clark and Unilever, is poised to leverage its extensive experience in the consumer tissue market. The company’s product portfolio includes well-known brands such as Kleenex, Kotex, and Huggies, as well as Unilever’s Dove and Lux. The recent addition of Dabur Limited to its distribution network further strengthens its regional presence.
The investment 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, highlighted the significance of this initiative, stating, “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.”
I&M Burbidge Capital, under the leadership of CEO Edward Burbidge, played a pivotal role in advising Kim-Fay on its debt capital raise. Burbidge 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.”
Tatu City’s business-friendly environment, characterized by benefits such as VAT zero-rating, import and stamp duty exemptions, and favorable corporate tax rates, makes it an attractive destination for investors. Over 80 local, regional, and global businesses are already operational or under development in the zone, including notable names like CCI Global, Heineken, and Twiga Foods.
Kim-Fay’s new facility at Tatu City is set to revolutionize the tissue paper industry in the region, providing affordable, high-quality products while championing sustainability. As the demand for hygiene products continues to rise, this investment reflects a significant step towards meeting consumer needs and supporting Kenya’s economic and environmental goals.
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