6 Kenyan Companies That Are Equity-Financed by IFC.

The international finance corporation is the investment wing of the World Bank Group that focuses on the private sector in developing countries. They offer investment, advisory, and asset management services to such companies.

Market forces are brutal to companies that are complacent in the production of goods and services. The free market guarantees that no company is too big to fail, retail giants like Tuskys and Nakumatt have been victims of the free market. Companies have been able to expand nationally and regional with a good financial partner.

Kenyan Enterprise has compiled a list of companies that have been equity financed by the international financial institution which explains their steady growth in the market.

1. Twiga Foods

Twiga Foods, a technology food distribution platform, has undertaken the task to ease the supply chain of farm producers, manufacturers, and retailers by limiting the number of intermediaries.

In 2018, the international finance corporation in partnership with TLcom, a pan African venture capital firm, invested Ksh 1 billion in Twiga food to aggregate more markets participants and buyers for food products.

2. Naivas

Naivas is the leading retailer in Kenya with over 75 stores nationwide and is owned by the Mukuha family. The international financier acquired a stake in the retailer worth 1.5 billion in 2020. With the financial backing, the retailer was able to acquire the stores left by Nakumatt and Tuskys.

Other equity companies were part of the consortium of investors that contributed to an extra 4.5 billion capital for Naivas. These private equity firms were Amethis, MCB Equity Fund and Deutsche Investitions- und Entwicklungsgesellschaft, German sovereign wealth fund .

3. Kenya Mortgage Refinance Company

Kenya Mortgage Refinance Company, a state-owned mortgage finance firm, was established in 2018 and licensed in 2020 to fund Primary Mortgage lenders to achieve the affordable housing agenda set by the Kenyan government.

In 2020, the International finance corporation became a board member of the state-owned mortgage finance firm. The financial institution and Shelter Afrique cumulatively contributed an equity investment of Ksh 400 million in 2020. In March 2022, the IFC  served as an anchor investor after buying a bond program worth Ksh 10/9 billion.

4. Savanna fund

Savanna fund is a seed capital fund,   that prioritizes investments in high-growth technology startups in sub-Saharan Africa, especially in the East African region. The company has provided angel investing and venture capital investment to technology startups with good prospects for growth.

International finance corporation(IFC)  invested Ksh 300 million in savanna fund to continue early-stage funding to start-ups and helps improve sectors such as fintech, education, logistics and e-commerce, healthcare, and tech.

5. Ascent Capital

Ascent Capital is a private equity fund manager that focuses on financing SMEs in Kenya, Ethiopia, and Kenya. The company which was founded in 2012, has grown due to its well-balanced market share in the three countries Kenya(50 percent ), Ethiopia(30 percent ), and Uganda (20 percent).

In January 2021, the IFC put in an equity investment of Ksh 1.096 billion in the east African private equity fund The fund has been well known to be driven by well-experienced private equity professionals that saw it get funding from the Dutch entrepreneurial development bank FMO.

6. Antler East Africa

Antler East Africa, a venture capital fund, has been focusing on early-stage entrepreneurs. The company has provided personalized coaching and training to startup entrepreneurs who are fortunate to be accepted into the program.

Antler East Africa received equity financing from the IFC worth Ksh 173 million to expand operations and develop a flexible support system for its entrepreneurs.