President Uhuru Kenyatta during the opening of EABL Kisumu plant.[Photo/PSCU]
East African Breweries Limited (EABL) has secured a Sh12.5 billion long-term loan from to fund the ongoing construction of its Senator Keg factory in Kisumu.
The completion of the factory is expected to create 110,000 direct and indirect jobs.
EABL received the loan from Standard Bank.
The regional brewer says the South Africa-based lender has committed to advance the business Sh7.5 billion with Stanbic Holdings, its Kenyan subsidiary.
The EABL, which is 50.02 per cent owned by multinational brewer Diageo, says it will pump in Sh2.5 billion of its own cash into the Sh15 billion factory whose construction is expected to be complete by July 2019.
“We managed to secure a Sh12.5 billion long-term facility,” said Gyuri Geiszl, EABL’s finance director.
“We have just drawn down a small portion, about Sh2 billion, since the project has just started. As we move along, we shall generate the cashflow to fund the remaining portion.”