EABL to finance Sh15bn Kisumu plant through borrowing

July 31, 2017 (3 weeks ago)
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The Managing Director Andrew Cowan says the firm will be seeking funding from local banks/FILE

, NAIROBI, Kenya, Jul 31 – The East African Breweries Limited (EABL) is planning to use debt to finance the Sh15 billion state-of-the-art brewery in Kisumu for its Senator Keg.

The Managing Director Andrew Cowan says the firm will be seeking funding from local banks.

“We are now in talks with local banks to see them fund the project that will be fully financed by debt,” Cowan told journalists.

Works on the plant which will sit on a 50-acre property in Kisumu are projected to take 18 months to complete.

According to projections, the plant alone will lead to increased utilisation of sorghum from the current 20,000 metric tonnes to around 40,000 in the next five years.

Increased demand for sorghum will see the number of contracted farmers grow from 30,000 to around 45,000.

As a result, gross additional farmer earnings are expected to reach over Sh6 billion annually over the next decade.

The plant for which ground will be broken on July 16, will engage sorghum farmers from Kisumu, Siaya, Migori, Homa Bay, Tharaka Nithi, Kitui and Makueni.

The investment would result in 110,000 jobs.

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