DOB Equity, a Dutch private equity fund, is investing in Countryside Dairy Ltd, a Nyahururu-based dairy-processing firm.
By investing in Countryside Dairy Ltd, the private equity fund with offices in Kenya, Tanzania and the Netherlands will be seeking a slice of the multi-billion shilling dairy sub sector.
Signing the deal last week, officials from DOB Equity said farmers will be quaranteed of better deals for their produce and customers will enjoy quality.
Brigit van Dijk-van de Reijt, CEO of DOB Equity, said: “Our latest deal in the East African dairy sector will allow Countryside Dairy to beef up its supply chain and offer better purchase prices to farmers, while guaranteeing product traceability.”
Countryside Dairy Managing Director George Mwangi said the entry of DOB Equity will boost the firm’s efforts to enhance value for Kenyan dairy farmers.
ALSO READ: Kenyan dairy processor finds Dutch suitors
Currently, receiving raw milk from more than 20,000 farmers drawn from Nyandarua and Laikipia counties, Countryside Dairy plans to expand its catchment area.
“The new partnership with DOB Equity will further give Countryside Dairy access to the world-renowned dairy processing technical capabilities in the Netherlands,” Ralph Jansen investment manager at DOB Equity said.
The new deal is set to boost the country’s vibrant dairy sector. According to the Kenya National Dairy Master Plan 2010 estimates, the Kenya dairy sub sector is valued at more thanSh100billion and is the single largest contributor to Kenya’s agricultural GDP-higher than tea and horticulture.
Countryside Dairy delivers high-quality pasteurised fresh milk to low-income areas, including Nairobi slums. Its strategic focus and business model is based on serving the underserved low-income segment of the population.