Kenyan tycoon Suresh Bhagwanji Shah’s I&M Group supports new Tatu City facility

Timilehin Adejumobi -

Key Points

  • I&M Group and Norfund are investing in a new Kim-Fay facility in Tatu City to manufacture affordable hygiene products using recycled paper.
  • The new facility, funded jointly by I&M and Norfund, will utilize local wastepaper and is expected to start operations by 2025.
  • I&M renewed its partnership with Mastercard for eight years, enhancing Kenya’s digital payments and expanding its branch network to 100 by 2026.

I&M Group, a top financial services provider founded by Kenyan businessman Suresh Bhagwanji Shah, has teamed up with Norfund to upgrade Kim-Fay’s operations. The partnership will establish a modern facility in Tatu City, a 5,000-acre Special Economic Zone near Nairobi.

Investment targets lower-income markets

The joint financing from Norfund and I&M Group will support Kim-Fay’s growth by targeting the lower-income market segments with affordable tissue products. The funds will be used to construct an advanced recycled paper manufacturing plant in Tatu City, which will utilize locally-sourced waste paper. The new facility is expected to start operations by 2025.

Raj Bains, CEO of Kim-Fay, emphasized the strategic significance of this investment, citing the growing demand for hygiene products in Kenya and East Africa. Bains also noted the facility’s focus on sustainability through recycled materials. David Karimi of Tatu City welcomed the development, noting its contribution to Tatu City’s reputation as a prime investment hub and Kenya’s economic growth.

Support for sustainable business practices

William Nyaoke, East Africa Director at Norfund, expressed enthusiasm about the project. “We are proud to partner with I&M Bank in financing Kim-Fay’s expansion and the construction of a cutting-edge wastepaper recycling facility. This initiative highlights our commitment to sustainable business practices and regional economic development,” Nyaoke said.

Edward Burbidge, CEO of I&M Burbidge Capital, remarked, “It was a privilege to advise Kim-Fay on its debt capital raise and secure prominent, long-term financial partners for this vital tissue manufacturing facility at Tatu City.”

I&M Group’s ongoing expansion

Founded in 1974 by Suresh Bhagwanji Shah, I&M Group is the holding company for I&M Bank Limited, operating in Kenya, Tanzania, and Rwanda, with a joint venture in Mauritius. Shah, instrumental in transforming I&M into a leading East African banking group, holds a significant 10.98 percent stake in the company.

As part of its expansion strategy, I&M Bank has renewed its partnership with Mastercard for an additional eight years, enhancing Kenya’s digital payments infrastructure. The bank also plans to expand its branch network to 100 locations across Kenya by 2026. Last year, I&M Bank created 299 new jobs, increasing its total headcount to 2,827 from 2,528 the previous year. This growth reflects the bank’s commitment to regional expansion and capacity-building.