State opens Sh5.1billion strategic investments in six firms
Ponea Health Africa co-founder Mike Macharia during an interview held on October 5, 2022, at his office located at Delta Riverside Office Park in Nairobi. The Kenya Development Corporation is seeking to have a strategic investor pump $10 million (Sh1.4 billion), into the company which has been in operation since 2019.
The government has lined up a pipeline of businesses as it scouts for an injection of capital worth $37.1 million (Sh5.1 billion), from both domestic and local investors.
The Kenya Development Corporation (KDC) has unveiled business ventures in milling, pharmaceuticals, agro-processing, digital payments, and alcoholic beverages with investment ticket sizes ranging from as low as $ 1 million (Sh138.6 million), to $11.5 million (Sh1.6 billion).
KDC is seeking investors to pump $11.6 million (Sh1.6 billion), into Funguo Investments Ltd, a Nairobi-based investments firm that was incorporated in 1987 and targets opportunities in both public and private firms, fixed-income securities, money markets as well as real estate. KDC reports that its investment in the company is currently valued at $15.0 million (Sh2.1 billion).
“The investment grants investors access to investment opportunities in private companies that investors would otherwise not access. The value proposition is achieving a target return on growth capital of a minimum of 25 per cent per annum and a target return on cash yield capital of 18 per cent per annum”, KDC states in its investor deck regarding Funguo Investments Ltd.
The corporation is also inviting investors to deploy $8 million (Sh1.1 billion), into Kajiado-based pharmaceuticals firm, Njimia Kenya Ltd, with the funds earmarked for use in upgrading the firm’s machinery and working capital.
According to documents seen by the Nation, Njimia Kenya Ltd which has been in operation for the last nine years currently has an asset base valued at $2.2 million (Sh304.9 million), with sales averaging about $1 million (Sh138.6 million), annually. KDC reports that its investment in the company is currently valued at $1.4 million (Sh194 million).
Online healthcare marketplace, Ponea Health Ltd, is also being pitched to investors by KDC, with the corporation seeking to have a strategic investor pump $10 million (Sh1.4 billion), into the company which has been in operation since 2019. KDC does not indicate owning a stake in the company.
Convertible debt
Digital payments service provider, Popote Innovations Ltd, is also up for grabs as KDC invites investors to pump $ 3 million (Sh415.8 million), into the company by way of convertible debt implying that the investment will be channelled into the company by way of a loan, the investors will have the window to convert it into equity down the road. KDC indicates that its investment in the payments firm is currently valued at $1.6 million (Sh221.8 million).
“Number of transactions averages 1.97 million per annum. The value of transactions averages $132 million per annum. Current sales average $2.53 million per annum”, KDC states in its pitch for Popote Innovations Ltd.
Investors are also being invited to consider deploying capital into Wakulima Flour Millers Ltd which is seeking $1.6 million, Sh221.8 million, of strategic investment to upgrade its machinery. KDC reports that its investment in the miller is currently valued at $1.8 million, Sh249.5 million, with an installed capacity of 100 tonnes per day and sales averaging $2.3 million (Sh318.8 million), annually.
Nanyuki-based alcoholic beverages firm, Mount Kenya Breweries Ltd, is also in the pipeline for capital injection as KDC courts investors to pump $ 1 million (Sh138.6 million), the worth of working capital into the firm. KDC reports that its investment in the company is currently valued at Sh138.6 million.
