Private equity firms invest Sh102bn in Kenyan businesses

Money Markets

Kenya attracted over Sh102 billion ($1 billion) in private equity, impact investment and venture fund deals in 2015, with the financiers buying into or lending to energy, financial, healthcare and real estate companies. PHOTO | FILE 

By John Gachiri

Kenya attracted over Sh102 billion ($1 billion) in private equity (PE), impact investment and venture fund deals in 2015, with the financiers buying into or lending to energy, financial, healthcare and real estate companies. Here are some of the reported ones.

1. Helios
The UK private equity firm was active this year after it sold most of its 24.99 per cent stake in Equity Bank to Norfund and NorFinance, NSSF Kenya, NSSF Uganda, Investec, African Alliance, Renaissance Capital and Genesis Investment LLP for Sh53 billion.

READ: Helios holds on to Sh1.3bn Equity shares
Helios also entered into a deal to buy the entire 70 per cent stake in Telkom Kenya held by France Telecom for an undisclosed amount.

2. Old Mutual/UAP Group

Old Mutual Group created a financial supermarket after it merged with UAP. The South African firm purchased a 60.7 per cent stake in UAP Holdings from businessman Chris Kirubi, Centum and PE firms Abraaj Group, AfricInvest and Swedfund for Sh23 billion. Old Mutual also owns Faulu Bank.

READ: UAP Holdings, Old Mutual merger firm to list on NSE

3. Fanisi Capital

Fanisi Capital continued with its deal scouting in 2015. In July, the firm bought a minority stake in Arusha-based Kijenge Animal Products for $6 million (Sh600 million). This was the first investment in Tanzania.

READ: Fanisi invests Sh600m in Tanzanian firm

The private equity firm also bought a stake in Nairobi-based European Foods Africa (EFAL) for $2.1 million (Sh210 million) in April.

EFAL said it will use the funds to expand processing and distribution of frozen pizzas and whole berries and fresh berry beverages to supermarkets, grocery chains and restaurants in Nairobi and Mombasa counties.

4. Ascent Capital

Ascent Capital acquired a stake in a Kampala-based mobile money agent Chims Africa for an undisclosed amount in September, its first deal in the country.

The private equity firm which raised $80 million (Sh8 billion) with its debut fund also invested Sh250 million ($2.5million) in Medpharm Holdings Africa, a medical diagnostic laboratory with operations in Ethiopia back in February.

READ: Ascent Capital buys stake in Ugandan-based MTN agency