Kim-Fay, a prominent East African manufacturer and distributor of hygiene, tissue and home care products, has announced a strategic partnership with the Norwegian Investment Fund for Developing Countries (Norfund) and I&M Bank to build a new manufacturing facility at Tatu City.
This development aims to bolster Kim-Fay’s expansion efforts and meet the rising demand for affordable hygiene products in Kenya and the East African region.
The collaboration will see an investment directed towards constructing a state-of-the-art recycled paper manufacturing plant at Tatu City, a 5,000-acre Special Economic Zone located on the outskirts of Nairobi. The facility will use locally sourced wastepaper and is projected to begin operations by 2025. This initiative aligns with Kim-Fay’s commitment to sustainability by focusing on recycled materials, addressing both economic and environmental goals.
Raj Bains, CEO of Kim-Fay, expressed optimism about the investment, noting, “This facility will significantly enhance our capacity to serve the growing demand for tissue and hygiene products while supporting our sustainability goals. We are grateful to Norfund and I&M Bank for their vital support.”
David Karimi, Deputy Country Head and Head of Sales at Tatu City, welcomed Kim-Fay’s move, highlighting that it reinforces Tatu City’s status as a leading investment hub. “This partnership is a testament to Tatu City’s growing appeal as a destination for world-class enterprises and reflects our mission to drive economic growth and sustainable development.”
Kim-Fay, licensed in Kenya to manufacture and distribute Kimberly-Clark’s products, such as Kleenex and Huggies, and Unilever’s Dove and Lux brands, has also recently partnered with Dabur Limited to distribute its Ayurvedic products. This new facility at Tatu City will further enhance Kim-Fay’s regional market presence.
The investment aligns with Norfund’s objectives to support sustainable businesses, create job opportunities, and improve living standards in developing economies. William Nyaoke, East Africa Director at Norfund, stated, “We are excited to back this project in partnership with I&M Bank. It exemplifies our commitment to sustainable business practices and regional economic growth.”
Edward Burbidge, CEO at I&M Burbidge Capital, added, “We are proud to have facilitated Kim-Fay’s financing and secured long-term investment partners for this project, reflecting the high caliber of business opportunities in Tatu City.”
Tatu City, known for its business-friendly environment, offers benefits such as VAT zero-rating, import and stamp duty exemptions, and reduced corporate tax rates. More than 80 local, regional, and global businesses, including major names like Heineken, CCI Global, and Twiga Foods, are either operational or under development within the zone.
Kim-Fay’s focus on affordability and sustainability, combined with its expanding product range across Kenya, Uganda, Tanzania, and Rwanda, positions the company well to meet the increasing demand for hygiene products driven by a growing middle class and heightened hygiene awareness in the region.