BIDCO, the largest manufacturer of edible oils in Kenya has received a Sh3.24 billion ($37 million) concessional loan from the International Finance Corporation to boost agricultural production and manufacturing.
According to the chief executive Vimal Shah, the loan to be repaid in seven years, will increase the refinery's current annual turnover of Sh21.93 billion to Sh35.09 billion in three years.
He said the expansion process will generate 330 direct jobs adding that about 3,000 more people will benefit across the value chain.
"The capital will be used to invest in new types of value added agricultural processing and to expand the facility for making soaps and detergents," he said yesterday during the signing of the loan agreement with the lender, in Nairobi.
The IFC which is the financing arm of the World Bank group, said the financing is aimed at creating a larger market for farmers
Regional head for manufacturing and agribusiness, German Vegarra was concerned that farmers have been getting losses due to dependency on rain fed agriculture and lack market for produce due to use of traditional farming methods.
"We are encouraging farmers to employ methods like irrigation because dependency on rain fed agriculture is no longer sustainable due to weather changes," he said adding: "We can only be able to link farmers to markets if they employ modern agriculture."