I&M Burbidge advises Kim-Fay East Africa on its Debt Raise

I&M Burbidge Capital Advises Kim-Fay East Africa on its Debt Raise from Norfund & I&M Bank for New Manufacturing Facility;
This significant transaction will support the construction of a new recycled paper manufacturing facility, furthering Kim-Fay’s mission of providing high-quality, affordable hygiene products while promoting sustainability;

I&M Burbidge Capital Limited (“IMBC”) has advised Kim-Fay East Africa Limited (“Kim-Fay”), a leading manufacturer and distributor of hygiene, tissue, and home care products, primarily operating in East Africa, on its debt raise from Norfund & I&M Bank.

Founded in 1998, Kim-Fay is known for producing high-quality products such as toilet paper, paper towels, and facial tissues. Their brands often emphasize high quality, affordability and accessibility, catering to both domestic and commercial markets. Kim-Fay, being a responsible corporate citizen, also focuses on sustainability, implementing eco-friendly practices in their manufacturing processes, with a strong ethos of uplifting lives.

Kim-Fay has built a strong reputation in the East African region, particularly in Kenya, Uganda, Tanzania, and Rwanda.

Their product range includes not only hygiene and tissue products but also baby care, feminine hygiene, and personal care products.

The company is committed to innovation and quality, continually investing in advanced technology and maintaining stringent quality control measures.

Norfund is the Norwegian Investment Fund for developing countries, investing to create jobs, improve lives and support the transition to net zero.

I&M Bank, a wholly owned subsidiary of I&M Group Plc which is listed on the Nairobi Securities Exchange, is a prominent financial services provider in East Africa, offering a comprehensive range of banking solutions to personal, business, and corporate clients.

The Bank which celebrates its 50th anniversary this year offers savings and current accounts, personal and business loans, credit cards, investment services, and digital banking.

Norfund and I&M Bank’s investment will fund the expansion of Kim-Fay’s business with an aim to provide affordable tissue paper to the mass, lower-income market segment in the region. Kim-Fay is backward-integrating through the construction of a new recycled paper manufacturing facility, which will use locally sourced wastepaper as an input. The new facility is being constructed in Tatu City, Ruiru with the commissioning expected by 2025.

Raj Bains, CEO of Kim-Fay,commented, “We’re thrilled about Norfund and I&M Bank’s investment, which will facilitate the development of the backward integration facility which will pave the way for Kim-Fay to enter into a major sub-segment in the industry.

We extend our gratitude to all stakeholders who contributed to this transaction, with special thanks to IMBC for their crucial support.

This milestone represents a significant step toward transforming wastepaper, that would otherwise be discarded as garbage, into value added tissue paper and establishing a fair and transparent circular economy that will benefit all stakeholders, including bringing a very good product at an affordable price to the market.”

Edward Burbidge, Chief Executive Officer at I&M Burbidge Capital, commented, “We are pleased to have advised Kim-Fay on its debt capital raise. Kim-Fay is a unique, environmentally, and socially impactful business in the Kenyan market, and we are delighted to have managed the process to secure high-profile, long-term financing partners for their backward integration tissue manufacturing facility.”

Speaking from Nairobi, I&M Bank CEO, Gul Khan, drew parallels between Kim-Fay’s commitment to climate action with the lender’s own saying, “As 2023 drew to a close, we underwent a strategy revamp and put sustainability at the centre of our agenda setting.

Kim-Fay’s reputation as frontline advocates for ecological footprint reduction resonates deeply with us and we are proud to be co-funding this important initiative with Norfund.”

William Nyaoke, Director, East Africa at Norfund, said “We are excited about this partnership with I&M Bank to finance Kim-Fay’s expansion and development of a state-of-the-art wastepaper recycling facility at Tatu City.

This project aligns perfectly with Norfund’s mandate to support financially and environmentally sustainable and scalable enterprises in developing economies to create job opportunities for our young people and improve lives.”