Norfund Commences Investment in Innovative Paper Recycling Infrastructure

Norfund has provided a USD 5.5 million senior loan to Kim-Fay to support the construction of a new recycling facility. This funding, combined with additional financing from I&M Bank, represents a key strategic initiative for the company. The recycling facility, set for completion in 2025, will enable Kim-Fay to use recycled wastepaper sourced locally in Kenya to produce its goods. This initiative marks a key step toward a circular economy while helping to reduce environmental impact.

The project is anticipated to generate approximately 300 permanent jobs. Approximately 100 of these positions will be based at the facility, with the remainder arising from wastepaper collection, transportation, and other support activities. By enhancing its operations, Kim-Fay aims to make essential hygiene products like toilet paper, baby wipes, and diapers more affordable for lower-income households. This expansion addresses the growing demand for hygiene products, fueled by a rising middle class in East Africa.

Kim-Fay operates mainly in Kenya but also exports to Uganda, Tanzania, and Rwanda, expanding its footprint across the region. CEO Raj Bains has expressed strong satisfaction with the investment, which aligns with the company’s long-term goals of sustainable growth and community impact.