Kenya’s bread maker Kenblest Group says it seeks a Sh1billion ($11.4 million) loan from Kenya Commercial Bank (KCB) to expand its milling plant.
“We are in talks with KCB to finance the project at Sh1 billion and we are optimistic the whole transaction will be sealed by the end of next month,” Group chief operations officer of Kenblest, Neel Shah was quoted by local media platform Business Daily as saying.
KCB has already made Sh180 million ($2.1 million) available for Kenblest to purchase a fleet of brand new vehicles. The company had already started renovating the milling plant.
The Thika-based firm expects to complete the new wheat and maize milling plant by the end of the year.
The company will co-finance the project using its reserves, as it seeks to continue being the largest baker in Kenya, with capability to supply 330,000 loaves per day.
Shah said the investment was in line with Kenblest’s expansion plans. The company intends to diversify its product portfolio this year as a way of increasing market presence and boosting sales volume.
Kenblest Group plans to diversify into more fast-moving consumer goods, which are yet to be disclosed. The firm also deals in mineral water, textiles, plastic paper bags and maize meal.
The new plant is expected to boost production to about 300 metric tonnes per day from the current 200 metric tonnes and create 200 more jobs.
