KENYA – Kim-Fay, a leading manufacturer and distributor of hygiene, tissue, and home care products, has secured US$5.5 million to expand its production capabilities with a new facility at Tatu City, Kiambu County, Kenya.

The funding is backed by the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank.

Norfund’s investment will support Kim-Fay’s efforts to offer more affordable tissue paper products, particularly for lower-income market segments.

The company plans to reduce production costs by establishing a recycled paper manufacturing line, using locally sourced wastepaper.

“This investment comes at a crucial time as demand for tissue and hygiene products continues to rise in Kenya and across East Africa,” said Raj Bains, CEO of Kim-Fay.

“Our new facility at Tatu City will allow us to meet this demand more efficiently while supporting our sustainability goals using recycled materials. We thank Norfund and I&M Bank for making this venture possible.”

Kim-Fay is licensed to manufacture, market, and distribute Kimberly-Clark products in Kenya, including popular brands like Kleenex, Kotex, and Huggies.

The company also distributes Unilever brands such as Dove and Lux in the region, and recently expanded its portfolio by signing a distribution deal with Dabur Limited, an Indian multinational known for its Ayurvedic products.

David Karimi, Deputy Country Head and Head of Sales at Tatu City, expressed excitement about the partnership, stating, “Kim-Fay’s expansion strengthens Tatu City’s position as a top investment destination and aligns with our mission to promote economic growth and sustainable development.

“This collaboration with Norfund and I&M Bank highlights Tatu City’s appeal to global enterprises contributing to Kenya’s economic progress.”

Tatu City, a special economic zone (SEZ), currently hosts over 80 local, regional, and international businesses, including CCI Global, Heineken, Dormans, and Twiga Foods.

The SEZ offers significant business benefits, including VAT zero-rating, import and stamp duty exemptions, and reduced corporate tax rates of 10% for the first decade and 15% for the following 10 years.

“We are thrilled to partner with I&M Bank to support Kim-Fay’s expansion and the development of a cutting-edge wastepaper recycling facility at Tatu City,” added William Nyaoke, Norfund’s Director for East Africa.

“This project underscores our commitment to driving sustainable business practices and economic growth in the region.”

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