KDC seeks over Sh5.2bn in investments – chief executive

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KDC seeks over Sh5.2bn in investments - chief executive
KDC seeks over Sh5.2bn in investments - chief executive

Africa-Press – Kenya. Kenya Development Corporation (KDC) is seeking over Sh5.2 billion from investors to fund healthcare, manufacturing, debt recapitalisation and development of new companies

It also announced that it will be divesting from several key priority projects and enterprises that have since matured.

The divestment is part of KDC’s strategy to de-risk Small and Medium Sized Enterprises (SMEs) deemed not attractive for private investors but have the potential to create employment and impact the economy.

Projects KDC is seeking strategic investors include Isiolo Meat & Airport Development, development of 8.4 million square feet industrial sheds at the Athi River EPZ and investors to set up in the Centum backed financial district located at Two Rivers Mall, Nairobi.

Speaking during a session on unlocking the challengesfacing African SMEs, KDC acting Director-General Norah Ratemo said the Corporation is selling its stake in a number of businesses that have matured and are now well positioned to independently grow.

“We are keen on supporting SME development across the country by investing in viable businesses in the early stages of development'” he said.

Ratemo said strategy is to de-risk these businesses and make them attractive to investors.

KDC subsequently provide them with financial and technical expertise and market access

Alongside the strategic investors the agency is further seeking private equity partners in a flour milling company with an estimated investment cost of $ 1.6 million (Sh221.8 million)

The country is also in the market for an investor to provide working capital financing for a fruit processor in an EPZ at an estimated investment cost of $2 million (Sh277.2 million).

The company, processes fresh mango and banana fruit into mango puree and banana concentrate for the export market.

KDC Unveiled several priority investment opportunities in Kenya in manufacturing, tourism, agriculture, healthcare, energy, blue economy, post-harvest management, and ICT at the 3rd Kenya International Investment Conference (KIICO).

In the health sector the corporation is after partners to inject $ 18 million (Sh2.5billion) working capital to upgrade and expand a locally owned pharmaceutical manufacturing company and inject funds into healthcare technology platform to expand existing infrastructure.

In the manufacturing sector the state cooperation is after a strategic partner to inject working capital into an alcoholic beverages manufacturing and distribution company to the tune of USD 1 million (Sh139million).

KDC has also announced that its looking for an investor to inject $11.5 Million (Sh1.6billion) capital in a locally established investment firm with over 35 years of market experience.

In adition the state corporation is after $3 Million (Sh416 million) in convertible debt to recapitalise a company that provides payment automation and expense management services.

KDC is inviting interested investors to take advantage of these opportunities and invest in Kenya’s economy.

Once these businesses have matured, KDC will divest from them, allowing it 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 highly skilled labour force.

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