DOB Equity, a Dutch family-backed impact investor in East Africa, has invested in Coconut Holdings Limited, producer and owner of the Kentaste range of coconut-based products.
The investment in Coconut Holdings adds to DOB Equity’s health conscious agri portfolio, following its recent investment in Ten Senses Africa, an organic macadamia nut producer and processing company.
Coconut Holdings owns and operates two coconut processing facilities on Kenya’s coast and is the largest producer of coconut oil, milk and cream in the country. It targets both the food and personal care market. The business purchases coconuts from small-holder farmers of which 1500 are organic and fair trade certified, and sells its products through the Kentaste brand. The investment will allow the company to expand its processing facilities, launch new products and further develop its sales across the wider East Africa region.
The Kenyan Government has acknowledged the potential of the coconut farming and processing sector as a ‘sleeping giant’ of the economy. It estimates that it could potentially add over KES25 billion to the national economy annually. As a result, the Government has looked to revitalise the coastal coconut industry by working with farmers to plant more coconut seedlings in order to improve local livelihoods and boost economic development.
DOB Equity adds that coconut farming and processing has a significant social impact. It provides small-holder coastal farmers with additional income, increases employment throughout the value chain from harvesting to processing and produces nutritious and healthy products for consumers.
Brigit van Dijk–van de Reijt, CEO of DOB Equity, says: “As the largest coconut processor in Kenya, Kentaste is well-positioned to benefit from the fast-growth demand for healthy products.”
“Coconut processing is a zero-waste business, and along with the substantial social impact it has on farmers, the investment fits perfectly in DOB Equity’s portfolio.”
Hayo Afman, Portfolio Director of DOB Equity, says: “The coconut tree is one of the most useful trees in the world due to its versatility, providing both nutritional and functional uses. It can provide food and drink as well as a livelihood.”
“Furthermore, coconut processing results in multiple by-products that can be used as input for other value chains, such as natural fibres for ropes, brushes or mats, coco peat for nurseries and charcoal for filters or fuel.”
Kyle Denning, CEO of Coconut Holdings, says: “We are very pleased and looking forward to working with DOB Equity on the expansion of our business. We have an ambitious growth trajectory and to unlock the full potential throughout the value chain, we need a financing partner that understands what it takes to secure sourcing, improve the process and enter new markets.”
