Kenafric Group, one of East Africa’s largest consumer goods manufacturers, controlled by the Kenyan Shah family, has launched a $10 million corporate venture fund to back African consumer companies seeking to expand beyond their home markets.

The fund, Kenafric Ventures, will combine early-stage financing with access to manufacturing, distribution and commercial expertise built over nearly four decades.

The fund will invest between $100,000 and $2 million in businesses that have demonstrated product-market fit and are ready to scale.

Its strategy targets a common obstacle for African consumer startups: securing the operational infrastructure and retail relationships needed to turn promising products into sustainable businesses across multiple markets.

Capital meets distribution power

Kenafric Ventures will focus on food and beverages, beauty and personal care, and consumer-facing retail platforms.

Its investment universe includes direct-to-consumer brands, experiential consumer businesses and related categories where Kenafric’s manufacturing capabilities and distribution network could help portfolio companies accelerate growth.

The fund will be managed by S2E Africa, a corporate venture studio, and was designed with support from FSD Africa, a Nairobi-based financial sector development organization.

The partnership reflects an investment approach that goes beyond writing checks, connecting entrepreneurs with the industrial capabilities and market access that established businesses have spent years developing.

Shah family targets startups

Mikul Shah, Kenafric Group’s chief executive officer, said the company wants to become a preferred growth partner for Africa’s most promising consumer businesses by sharing its experience in manufacturing and distribution.

“Building a great product is only the beginning,” Shah said, pointing to the company’s experience moving products from its Nairobi factory onto retail shelves across East Africa. He said that expertise could be as valuable to emerging consumer brands as the financing itself.

Pulkit Srivastava, founder and CEO of S2E Africa, said corporate investment can give startups access to capabilities that are difficult to replicate through conventional venture capital. Relationships with established manufacturers and distributors can support production, entry into new markets and, potentially, future acquisitions.

A new role for corporate capital

Juliet Munro, director of early-stage finance at FSD Africa, said relatively little corporate capital reaches African startups, despite the resources available within established businesses. She argued that companies should complement their corporate social responsibility programs with direct investments in enterprises capable of building lasting commercial value.

Kenafric Ventures offers one model for channeling corporate capital into businesses that need both funding and operational support.

For startups, access to established production facilities, distribution channels and market knowledge could help reduce the challenges of expansion, although the fund’s impact will depend on its investment choices and the execution of its partnerships.

Kenafric’s East African roots

Headquartered in Nairobi, Kenafric Group is one of East Africa’s largest family-owned consumer goods manufacturers. The business traces its roots to a small shop opened in 1969 and was formally established in 1987 by the Shah family, including Velji Punja Shah and his four sons: Bharat, Nilesh, Mikul and Mayur.

Led by Chairman Bharat Shah and CEO Mikul Shah, the company has built manufacturing and distribution operations that underpin its expansion into venture investing.

The new fund gives Kenafric a way to extend those capabilities beyond its own product portfolio, positioning the family-owned business as a potential partner for consumer brands seeking to grow across East Africa and other African markets.

S2E Africa helps corporations, family offices and international businesses invest in and expand across African markets. FSD Africa, established in 2012 and headquartered in Nairobi, supports the development of financial markets across sub-Saharan Africa, with the broader goal of expanding access to finance and supporting long-term economic growth.