Ascent Rift Valley Fund (ARVF), an SME Private Equity Fund investor has increased its investment presence in Kenya through the acquisition of Metro Plastics Kenya Limited, a manufacturer of PVC and PPR water pipes, electrical conduits, waste pipes, fittings and gutters.
The Private Equity Fund is positioning itself for increased activity in the real estate and construction sectors. These sectors are expected to pick up again buoyed by the government’s push for affordable housing as part of its big four agenda, and following the repeal of the law on interest rates cap.
Speaking during the signing of the deal, Mr. David Owino, Partner at Ascent Capital Advisory Services LLP said that their investment will focus on expanding the range of products manufactured by Metro Concepts East Africa as well as expanding its presence in the region.
Said he, “Among the key value addition areas for the fund are product development, the introduction of improved manufacturing practices and technology and implementation of Environmental, Social and Corporate Governance (ESG) standards to measure the ethical impact and sustainability of the business. We strongly believe that most achievements are derived from employee productivity gains, and as such we are committed to investing in the employees. This should see better quality products availed at affordable pricing to customers.”
Mr. Owino added that the investment will have a huge impact on not only the real estate and construction sectors but the economy as a whole. This is informed by plans to expand the company’s product offering thus reducing the need to import and thereby increasing employment opportunities.
The manufacturing sector is a key driver of Kenya’s economic development in terms of job creation, national output and exports as indicated by its huge role in Vision 2030.
The sector’s overall goal in the Vision 2030’s midterm plan is to increase its contribution to GDP by at least 10% per annum.
This deal is Ascent Rift Valley Fund’s third investment in Kenya having invested previously in Kisumu Concrete Products and Auto Springs EA Ltd, a motor assembly and vehicle spare parts maker.
