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Belgian Ambassador to Kenya Peter Maddens.
Belgian state-funded development finance lender BIO Invest Company has lined up an investment of up to €30 million (Sh4.32 billion) for impact-driven businesses in Kenya.
The firm, which has been operating in Kenya for more than 25 years, lent KCB Group $22 million (Sh2.8 billion at current exchange rates) in 2020 for onward lending to micro, small, and medium-sized enterprises.
It has also lent $10 million (Sh1.29 billion) to Victoria Commercial Bank and facilitated local Internet provider Poa Internet with a grant of €17,000 (Sh2.45 million).
Kenya is one of the 70 countries that BIO, which has a capital base of €1.2 billion, invested in.
“Out of this money, the government expects us to invest 45 per cent in Africa,” said BIO chief executive Joris Totté.
Mr Totté said the company targets businesses that create impact, focusing on climate finance, financial inclusion, renewable energy, agriculture, and manufacturing.
The CEO was speaking on the sidelines of a ceremony to mark his inaugural visit to Kenya, held at the residence of the Belgian Ambassador to Kenya Peter Maddens in Nairobi on Thursday. “Thanks to the portfolio that we have built up, Kenya is our number two largest investment country. The first is India, then Kenya. The third is Nigeria,” he said.
The BIO boss said while the company can only lend a maximum of 10 per cent to businesses in a single country to minimise its exposure, its exits in some of the businesses will free up more investment quotas.
“Kenya is such a fertile country for investments but we are slowly reaching a cap on the investments that we can do. In Kenya, we are now at around 8.4 per cent so we still have room to grow,” said Mr Totté.
BIO is seeking to explore opportunities across the region, especially in countries that have high investment potential, such as Tanzania, he said.
BIO’s Nairobi office, opened in 2019, serves Kenya, Uganda, Tanzania, and Rwanda. It also serves Ethiopia, Zambia, Malawi, Mozambique and South Africa.
“Right now we want to use our base here to also do more in other countries, for example, Tanzania,” said the CEO.
According to Nada Shall, BIO’s regional head for East Africa, the firm’s expansion would also help Kenyan companies that have regional subsidiaries.
“Some Kenyan companies are diversifying in the region, so we can support them indirectly in those countries because we still have funding for those geographies,” said Ms Shall.
She said having a presence in eastern Africa is key for the firm to increase its impact and footprint in the region and provides it with better market intelligence.
