Proparco backs Kenya Nut Company with $18.7m loan
French development financier Proparco is supporting Kenya Nut Company with a $18.7 million loan. This family-run business has diversified its activity and has been operating in the nut sector (macadamia and cashew nuts) in Kenya for over 40 years.
With macadamia nut production of some 32,000 tonnes in 2019, Kenya is the third largest producer of macadamia nuts in the world, accounting for 14% of global production.
Kenya Nut Company was set up by coffee growers in the 1970s, under a government programme to diversify Kenya’s sources of export revenues by promoting crop diversification, especially towards macadamia nuts.
Following a growth phase focused on the development of the production and export of raw nuts in the early 2000s, Kenya Nut entered into a diversification phase with the construction of two processing plants. This allowed it to integrate the downstream sector, while securing its supply via its own plantations and external producers.
In 2018, Kenya Nut, processed 25% of the national harvest and marketed 2.5% of the global production of macadamia kernels.
The long-term financing from Proparco will mainly finance the company’s 2019-2021 development plan. To help Kenya Nut cope with the health crisis, part of Proparco’s financing will also be earmarked for short-term cashflow needs to give Kenya Nut flexibility in this particular period.
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