The International Finance Corporation (IFC) is to inject Sh2bn (US$23m) into Bidco Oil Refinery to boost the Kenyan firm’s Sh4b (US$46m) expansion plan.
The company will use the funds to expand its current Thika-based plant and construct a new factory on the same piece of land where the current plant is located. The expansion will cater for the existing product line while the new plant that is to be constructed is for its new products. Construction of the new plant, which will include a waste-water treatment plant, is expected to be completed by June 2015.
The company hopes to increase its employment opportunities by 15%. Bidco is the leading manufacturer of fat and fat related products in Kenya with a 60% stake in the market. IFC will give an additional Sh1.17b raising the total investment amount to Sh3.17b (US$36m).
After the expansion, the company will increase its work force to 2,596 employees from 2,256 over the next two years. It will also result in the inclusion of about 20,000 workers who would be included in its supply chain.