The International Finance Corporation (IFC) plans a Sh10.98 billion debt and equity investment in Africa-focused Chinese manufacturing and trading company, Sunda Enterprise Limited for use in the expansion of baby diapers and sanitary pads factories in Kenya, Tanzania, Ghana, and Zambia.
Sunda Enterprise Limited runs a factory in Mavoko, Machakos county, and produces baby diapers and sanitary pads under the Softcare brand.
The IFC said that the proposed investment is a financing package consisting of a loan of up to EUR50 million (Sh7.1 billion) to Sunda’s subsidiaries Sunmart Trading FZCO Dubai (Sunmart) and Senbai Holdings FZCO, Dubai (Senbai).
There will also be an equity investment of $30 million (Sh3.88 billion) in Softcare Limited, which is also the guarantor of IFC’s proposed loan to Sunmart and Senbai -- both fully-owned subsidiaries of Softcare, which itself is a subsidiary of Sunda.
“The proceeds from IFC’s debt and equity investments will be used to finance the capacity expansion of baby diapers and sanitary pads factories with a total project cost of $155 million. The proceeds will be used to finance new production lines for baby diapers and sanitary pads within existing factories in Ghana, Kenya, Tanzania, and Zambia (the Project),” the IFC said in a disclosure.
The baby diapers market has been growing steadily with existing manufacturers expanding their production capacity to keep pace with demand even as new entrants line up to join the business.
For instance, fast-moving consumer goods company, Bidco in September 2024 ventured into the baby diapers market with the introduction of Gental Care pant diapers.
Projections by data gathering firm Statista show that revenue in the baby diapers market in Kenya is expected to reach $254.85m (Sh32.97 billion) in 2025, buoyed by a growing urban population and buyers seeking convenience.
The baby diapers market in Kenya has both imported and locally produced brands. The prominent baby diaper brands in Kenya include Huggies, Pampers, Molfix, Softcare, Kisskids, Snuggles, and Kiddy Care among others.
