Funguo Investments, which is partly-owned by parastatal ICDC, has bought a majority stake in Feastfoods Processors marking its entry into the agro processing industry.
The firm has injected Sh425 million into the venture in a deal partly financed by Sh246 million debt from ICDC.
Feastfoods Processors, a subsidiary of Next Estate, is setting up a fruit juice puree and concentrates plant in Kwale county, a project currently valued at Sh1 billion. Nest Estate has bought land and is currently setting up the premises.
The acquisition of specific machinery is set to follow as efforts to start the plant’s operations in late October get underway.
The factory will have a capacity to produce 20 tonnes of fruit puree and concentrates daily and plans to sell in bulk the processed mango, pineapple and passion juice to suppliers and packaging firms, both locally and internationally.
“What most people don’t know is that Kwale is an agricultural place and is one of the top producers of mangoes in Kenya.”
“Next Estate had already identified this location as the perfect place to construct fruit processing factory and we got on board because of how sustainable this business will be,” said Funguo Investments chief executive officer Kenneth Muchina.
Funguo Investments holds significant equity in AON Kenya Insurers Brokers, Almasi Beverages Limited, UAP Holdings, Africa Energy Group, the producers of concrete power poles, and Heri Limited, a real estate firm that has a stake in College House, Kolobot Gardens and Norfolk Towers.
Feastfoods expects employ 50 people and provide market to over 30,000 farmers in the coastal town.