Texplast secures US$15M investment to scale aseptic packaging

KENYA – Texplast Industries has secured a US$15 million investment from Norfund as part of a US$30 million project to establish an aseptic packaging production facility in Kenya.

The plant, which is scheduled for commercial commissioning by late 2026, will manufacture aseptic packaging materials for the UHT dairy, juice, and liquid food industries, strengthening regional packaging capacity and reducing reliance on imports.

The facility, equipped with the latest generation of aseptic packaging technology, will introduce local manufacturing capacity for a critical packaging input to East Africa’s food processing sector. 

Aseptic packaging enables products to be stored and distributed safely without refrigeration, extending shelf life and improving access to markets where cold chain infrastructure remains a constraint. 

Donald Muchiri Kariuki, Senior Investment Manager at Norfund, stated that increasing domestic production of aseptic packaging will enhance supply chain resilience and support the continued growth of East Africa’s food processing sector. 

Texplast’s market position and dedicated recycling division

Founded in 1971, Texplast is one of East Africa’s leading packaging manufacturers, supplying a diverse range of customers across the food, beverage, agriculture, construction and consumer goods sectors throughout East and Central Africa. 

The company is working to promote circularity in the packaging sector, operating a dedicated recycling division capable of processing waste into high-value raw materials to sustainably supplement its own manufacturing operations. 

Texplast currently supplies approximately half a million reusable bags each month to Carrefour stores in Kenya and Uganda, with a full-cycle recycling approach that transforms worn-out shopping bags into raw materials for new reusable bags.

Job creation and regional impact

The project is expected to drive significant job creation, both direct and indirect, contributing to value addition within Kenya’s manufacturing sector. 

These jobs span employment at the factory itself and roles supported across the supply chain, from raw material procurement to logistics and distribution of finished products.

Kariuki noted that the investment aligns with Norfund’s mandate to create jobs and promote sustainable industrial development. 

The project is part of a broader trend of strengthening local manufacturing capacity in East Africa’s packaging sector, where demand is rising faster than local production capacity. 

The region’s packaging market is projected to grow from approximately US$45 billion in 2025 to nearly US$58.5 billion by 2031, with Kenya set to be among the fastest-growing packaging markets. 

The East African packaging and processing industry stands at a defining moment, with demand for packaged goods rising rapidly across the region.

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