NAIROBI, Kenya, Mar 7 – Funguo Investments Limited has acquired a majority stake in Feastfoods Processors Limited, a food processing company that processes fruit juice puree and concentrates in Kwale County.
The value of the project is Sh1 billion, and the funds for the first phase have already been availed.
The transaction will see Funguo Investments Limited own 51 percent stake of Feastfoods, a company set to produce puree and concentrates of mango, pineapple, and passion from locally grown fruits, mainly from Kwale County as well as other counties in the Coastal and lower Eastern regions.
It is estimated that about 65 percent of puree concentrate is usually imported.
Feastfoods is expected to directly employ over 50 employees and provide a market for over 30,000 farmers in the coastal county who often suffer losses for lack of a ready market for their fruits.
“Fruits from the coastal region of Kenya have largely been going to waste with post-harvest waste levels for mango as an example estimated at 55 percent of total production. Feastfoods intends to offer a partial solution to this problem by buying from the farmers and processing the fruits to make puree and concentrate to sell to local and export markets juice and other food product manufacturers,” said Kenneth Muchina, Funguo Investments Limited’s CEO.
The fruit processing plant is estimated to produce about 20 tons of fruit puree daily with the plant processing at 36,000 tons.
It is expected that the groundbreaking for the processing plant will be in three months with the commissioning of the state-of-the-art plant slated for October this year.
The acquisition of the stake in Feastfoods by Funguo adds to Funguo’s list of strategic investments that span stakes in Insurance, Insurance Brokerage, Risk and Pensions Consulting, Real Estate, Beverages and Concrete Products.