IFC, in its investment disclosures, says the loan is part of funds being mobilised by Suguna to invest in the construction of feed mills, breeders and hatcheries.
Suguna will invest $8.4 million (Sh861 million) in the projects that the global financier says will help it to capitalise on the growing economy and expanding poultry sector in the country.
Suguna’s expansion is set to increase competition for established and new players including Unga Group and Car & General.
The International Finance Corporation (IFC) is lending $4 million (Sh410 million) to Suguna Poultry Kenya Ltd, which is expanding its feed and hatcheries business.
The company has a breeding operation in Kajiado and runs a feedmill in Thika, Kiambu.
IFC, in its investment disclosures, says the loan is part of funds being mobilised by Suguna to invest in the construction of feed mills, breeders and hatcheries.
Suguna will invest $8.4 million (Sh861 million) in the projects that the global financier says will help it to capitalise on the growing economy and expanding poultry sector in the country.
The value of poultry and eggs produced in Kenya jumped 13 percent to Sh12 billion in 2018 compared to Sh10.6 billion the year before, according to official statistics.
The value of poultry feed, however, dropped to Sh5.1 billion from Sh6.1 billion over the same period.
Suguna’s expansion is set to increase competition for established and new players including Unga Group #ticker:UNGA and Car & General #ticker:C&G.
The company, a subsidiary of India’s multinational Suguna Holdings, started operations in Kenya in 2017. It sells its feed and chick products across the country.
“IFC is able to provide the group with global industry knowledge in poultry, food processing and agribusiness and help to facilitate the exchange of ideas with other IFC clients, thus enhancing Suguna's overall operational know-how and knowledge of the latest technological advances,” IFC said.
The IFC noted that the investment is expected to bring several benefits in line with its social impact investing goals.
“The most significant, expected project-level outcome is the impact on the incomes of poultry farmers who participate in Suguna's outgrower (contract farming) model or use the group's inputs for independent poultry production,” it said.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
