Kenya Development Corporation (KDC) has invited consultants to design a new framework for equity and quasi-equity investments, aiming to tighten governance protections and improve portfolio returns.
The assignment will draw on practices used by the International Finance Corporation (IFC) and will cover minority shareholdings, preferred shares, convertible instruments and other financing structures while assessing commercial viability, development impact and transaction risks.
KDC already provides financing through its Redeemable Preference Capital Facility, which offers redeemable, cumulative and convertible preference shares, so the review does not represent a first move into equity financing.
The consultant will also examine KDC’s existing holdings, evaluating each company’s financial position, commercial viability, operational performance, governance arrangements, market prospects and funding requirements, and will recommend restructuring, recapitalisation, strategic partners or partial stake sales where appropriate.
For businesses with recovery potential, the adviser will propose turnaround plans that set out interventions, estimated costs, funding sources, milestones and performance targets; for those unlikely to recover, an orderly exit will be advised.
KDC’s loan book grew 41 per cent to KSh9.8 billion for the year ended June 2025, up from KSh6.93 billion, while equity investments rose to KSh18.1 billion from KSh17.6 billion and dividend income increased to KSh816.08 million from KSh469.43 million.
Dividend receipts came from Almasi Beverages (KSh22.88 million), Kenya Wine Agencies Limited (KSh217.45 million), Minet Kenya Insurance Brokers (KSh196.24 million), Isuzu East Africa (KSh105.31 million) and Centum Investments (KSh48.91 million).
The review will outline exit routes such as trade sales, secondary share sales, management or founder buy-backs and initial public offerings, noting that the Nairobi Securities Exchange is exploring a secondary-investment vehicle with the Nairobi International Financial Centre and citing Quickmart’s November 2026 IPO, which included secondary sales and an IFC stake of 6.45 per cent.
Beyond its current portfolio, KDC wants the consultant to develop partnership models with development finance institutions, private-equity and venture-capital funds, strategic investors and other capital providers, enabling co-investment and risk sharing; the IFC’s recent $25 million commitment to Lightrock Africa Fund II is offered as an example.
KDC also seeks advice on mobilising green capital and structuring equity-linked financing for sustainable projects, building on its Green Financing Facility that supports renewable energy, water, sanitation, sustainable agriculture and circular-waste initiatives.
The assignment includes staff training, mentoring and the creation of internal policies for investment appraisal, valuation, governance, portfolio monitoring, risk management and measurement of development outcomes.
“The assignment is intended to support KDC to identify and structure credible investment transactions, drawing on good international development finance practice, including approaches commonly used by the IFC,” said KDC.
The consultancy’s blueprint will guide how KDC structures future equity and quasi-equity deals, exercises shareholder rights, manages troubled holdings and decides when to exit, as the corporation seeks to strengthen its investment management capacity within a Kenyan market that is also developing mechanisms such as the National Infrastructure Fund to attract private capital.
