Kenyan multi-millionaire businessman Narendra Raval has raised $97 million (Shs291bn) in the form of debt and equity from the International Finance Corporation to fund the construction of new cement plants for his company, National Cement.
According to a report by Kenya’s Nation newspaper, Raval, who is the chairman of steel giant Devki Group, will also invest an additional $100 million (Shs369bn) from his personal funds into National Cement’s expansion plan that will cost close to $200 million.
National Cement, which is a subsidiary of Devki Group and Kenya’s largest indigenous cement company, is constructing two grinding plants in Uganda and Kenya and one clinker line next to its $280 million cement clinker plant located in Merrueshi/Mbirikani in Kajiado County which it launched in February. National Cement is also building an eight-megawatt power plant next to the first clinker.
IFC’s proposed investment is split into loans amounting to $90 million (Shs332bn) and equity of $7 million (Shs25.8bn).
Once completed, National Cement’s new plants will significantly increase the cement maker’s output and drive down cement prices, while cementing the company’s position as East Africa’s dominant cement manufacturer. The expansion will also reportedly create 323 new direct jobs in Kenya and 173 jobs in Uganda.
Raval and his family currently own 85% of National Cement while the remaining 15% stake is held by IFC.
Narendra Raval is the founder of the Devki Group, a $600 million (revenues) conglomerate that produces steel products and cement in Kenya, Uganda and the Democratic Republic of Congo. The renowned philanthropist has donated several millions of dollars to causes in education, health and the arts, and he has pledged to donate half his fortune to charity.