Kenafric Group launches Ksh.1.3B fund to back African consumer businesses

The fund, known as Kenafric Ventures, will invest between $100,000 and $2 million in companies that have established product-market fit and are ready to scale.

Managed by S2E Africa with support from FSD Africa, the fund will target businesses in the food and beverage, beauty and personal care sectors, as well as consumer-facing retail platforms and direct-to-consumer brands.

Selected businesses will receive not only financing but also access to Kenafric's manufacturing, distribution and market expertise, built over nearly four decades since the company was established in 1987.

Kenafric Group Chief Executive Officer Mikul Shah said the fund would help emerging businesses address challenges beyond raising capital, particularly in manufacturing and getting products to consumers across the region.

"Building a great product is only the beginning. We have spent nearly four decades learning how to get a product from a factory in Nairobi onto shelves in shops across East Africa. That knowledge can be as valuable to a young consumer business as the cheque itself," Shah said.

He added that the company aims to become a preferred growth partner for promising consumer businesses across Africa.

The initiative comes as startups and small businesses seek financing and operational support to navigate fragmented markets, varying regulatory requirements, infrastructure gaps and complex distribution networks across the continent.

S2E Africa Founder and Chief Executive Officer Pulkit Srivastava said partnerships between startups and established companies could provide opportunities for growth beyond the initial investment.

“For consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone. A relationship that begins with an investment can grow into distribution, manufacturing, expansion into new markets and, potentially, a future acquisition,” Srivastava said.

The fund builds on work undertaken earlier this year by FSD Africa and S2E Africa to explore ways of directing more corporate investment towards small and growing businesses.

FSD Africa Director of Early Stage Finance Juliet Munro said corporate capital remained an underused source of financing for African startups, with large companies often engaging with entrepreneurs through corporate social responsibility programmes rather than direct investment.

"Corporate capital in Africa is abundant, but very little of it reaches startups,” Munro said.

She said Kenafric Ventures demonstrated how established African companies could combine financing with operational expertise to support businesses with long-term growth prospects.

The fund is now open to founders and co-investors across Africa. Entrepreneurs seeking investment can apply through S2E Africa's website at https://s2eafrica.com/.

Corporates and investors interested in co-investing or establishing their own corporate venture programmes can also contact S2E Africa through the same platform.