Kenya Development Corporation Lists SMEs In Derisking Strategy To Woe Investors
In a move to derisk Small and Medium Sized Enterprises (SMEs) deemed risky for private investors but have the potential to create employment and impact the economy, Kenya Development Corporation (KDC) has announced that it is divesting from several key priority projects and enterprises that have since matured.
KDC is Kenya’s single cross-sector Development Finance Institution, enabled with sufficient scale, scope, and resources to play a catalytic role in Kenya’s socioeconomic development. The Corporation is committed to facilitating investment in critical sectors of the economy, including infrastructure, agriculture, manufacturing, and technology.
KDC Unveiled several priority investment opportunities in Kenya in various sectors, including manufacturing, tourism, agriculture, healthcare, energy, blue economy, post-harvest management, and ICT. The investment opportunities were presented during the 3rd Kenya International Investment Conference (KIICO).
KDC is inviting interested investors to take advantage of these opportunities and invest in Kenya’s growing economy. Speaking during a Special Concurrent session on Unlocking the Challenges Facing African SMEs, KDC Acting Director General Norah Ratemo said that the Corporation is selling its stake in a number of businesses that have matured and are now well positioned to grow without KDC’s ownership.
“We are keen on supporting SME development across the country by investing in viable businesses in the early stages of development. Our strategy is to derisk these businesses and make them attractive to investors. We subsequently provide these businesses with financial and technical expertise and market access,” Ms. Ratemo said. “Once these businesses have matured, we divest from them, allowing KDC to re-invest in new businesses and continue supporting Kenyan SMEs’ development.
She further expressed confidence in the Kenyan market, citing a predictable tax regime, stable economic environment, improving ease of doing business, and availability of a highly skilled labour force.
“Kenya is a land of great opportunities and is ripe for investment,” Ms. Ratemo said. “We have a young and growing population, a stable political & environment, reducing energy costs, and a sound economic foundation. We are also a gateway to the East African Community and the wider African continent, making Kenya a great place to do business for local and international investors.”
KDC is seeking strategic investors in the following priority projects:
- The development of the Isiolo Meat & Airport Development,
- Development of 8.4 million square feet Industrial Sheds at the Athi River EPZ.
- Investors to set up in the Centum backed, soon to be zoned financial district located at Two Rivers Mall, Nairobi.
KDC is further seeking private equity partners in the following companies:
- In a flour milling company with an estimated investment Cost: US$ 1.6 Million
- An investor to provide working capital financing for a fruit processor in an EPZ at an estimated investment Cost: US$ 2 Million. The company, processes fresh mango and banana fruit into mango puree and banana concentrate for the export market. The investor should have expertise in production management.
- A strategic partner to inject US$ 8 million working capital to upgrade and expand a locally owned pharmaceutical manufacturing company. The company manufactures generic medicines for the local market.
- A strategic partner to inject US$ 10 million into a healthcare technology platform to expand existing infrastructure.
- An investor to inject $11.5 Million. 50% to growth capital and 50% to cash yield capital in a locally established investment firm with over 35 years of market experience.
- A $3 Million in convertible debt to recapitalize a company that provides payment automation and expense management services.
- A strategic partner to inject working capital into an alcoholic beverages manufacturing and distribution company to the tune of USD 1 million
Interested parties are encouraged to contact KDC for more information.