Kenya absorbs 87% of private equity investments in East Africa
In 2017 and 2018, Kenya took the lion’s share of private equity investments in East Africa. This is indicated in a report co-issued June 20 by the audit cabinet KPMG and the East Africa Venture Capital Association (EAVCA). Of $1.4 billion invested over the period, Kenya captured $1.2 billion.
According to the report, the largest transactions were made in Kenya for $1.2 billion. This country remains the most popular investment destination in East Africa, with a particular focus on the agribusiness, financial services and consumer goods sectors.
Private equity deals in Kenya in 2017 and 2018 include $300 million from the British fund Actis for the Kipeto Energy wind farm and $100 million from Moringa Fund for Asante Capital EPZ, a Kenyan company that develops tropical crop plantations (ginger, moringa and eucalyptus, mainly).
The report also notes that local pension funds are increasingly becoming an important source of capital for local and foreign private equity firms.