Dutch family-backed DOB Equity has acquired an undisclosed stake
in a Kenyan producer of coconut oil, milk and cream, raising its
health-conscious agribusiness portfolio in the country.
The
East African-focused impact investor in a statement Monday said the
funds it has injected in Coconut Holdings Ltd will finance expansion.
The
coconut processing firm is looking at expanding production capacity,
launch new products and further develop its sales to cover the
six-nation East African Community bloc.
The firm, which operates two plants at the Coast, relies on small-holder farmers for supplies.
Coconut
Holdings trades under the Kentaste brand and largely targets the food
and personal care market. As the largest coconut processor in Kenya,
Kentaste is well-positioned to benefit from the fast-growth demand for
healthy products,” DOB Equity chief executive Brigit van Dijk – van de
Reijt said in a statement.
“Coconut processing is a
zero-waste business, and along with the substantial social impact it has
on farmers, the investment fits perfectly in DOB Equity’s portfolio.”
The
acquisition comes a fortnight after the firm bought into macadamia nut
processor Ten Senses Africa, which also depends on farmers at the Coast
for supply of nuts.
The government has since 2013 been
looking at revitalising coconut farming, an industry with potential to
add more than Sh25 billion to the economy every year.
“We have an ambitious growth trajectory and to unlock the full
potential throughout the value chain, we need a financing partner that
understands what it takes to secure sourcing, improve the process and
enter new markets,” Coconut Holdings chief executive Kyle Denning said.
The popularity of coconut trees has seen other counties such as Nyeri explore their commercial viability.
“The
coconut tree is one of the most useful in the world due to its
versatility, providing both nutritional and functional uses. It can
provide food and drink as well as a livelihood,” DOB portfolio director
Hayo Afman said.
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