Private equity firms have invested $1 billion in Kenya in 2015

Dec 11, 2015

This represents a 700 per cent increase on the previous year.

Private equity firms have invested about $1 billion (€910 million) in Kenyan companies over the first eight months of 2015, according to a new report from consulting firm Burbidge Capital.

This represents an increase of 700 percent over the same period in 2014, through investments that were mainly made primarily in the financial services sector.

The report cites the acquisition this year of a 24.9 per cent stake in Equity Bank by Norwegian fund Norfund - for an estimated $220 million.

"The favorable demographic dynamics, stable macroeconomic fundamentals, technology-based products, along with an increase in available resources and a structural gap between supply and demand are all factors that have contributed to create investment opportunities in the financial services industry, " according to the report, seen by Ecofin agency.

Helios Investment Partners, a private equity fund focused on Africa, raised for the first time more than $1 billion this year.

The group, based in London, said that the fund's record size is a sign that "private equity in Africa is maturing" and reflects investors' growing appetite for the continent.

According to the Overseas Development Institute, foreign private equity investment in Sub-Saharan Africa has increased fivefold since 2008 to reach $12 billion.ADNFCR-2976-ID-801807910-ADNFCR