Norfund invests US$18M to boost Irvine’s poultry operations in East Africa

KENYA – Norfund, a Norwegian development finance institution, has committed US$18 million to Irvine’s Group, a leading poultry producer, to bolster food security and enhance sustainable agricultural practices in Sub-Saharan Africa. 

This investment, announced in a high-profile event in Nairobi, aims to expand poultry and feed production across East Africa, specifically in Kenya, Tanzania, Botswana, and Mozambique.

Irvine’s Group, renowned for supplying broiler Day-Old Chicks (DOCs) and high-quality poultry feed across Sub-Saharan Africa, plans to leverage this funding to establish key infrastructure that will scale its operations. 

Central to the expansion is the development of a new grandparent poultry farm and feed mill in Tanzania, as well as a state-of-the-art hatchery in Kenya. 

These initiatives are expected to significantly increase local production capacity and reduce reliance on imported poultry products, thus bringing the supply chain closer to regional markets.

Speaking at the event, William Nyaoke, Norfund’s Regional Director for East Africa, emphasized the alignment between Norfund and Irvine’s shared goal of improving food security through sustainable agribusiness. 

“By scaling production capacity and strengthening local supply chains, our investment will allow Irvine’s to serve more smallholder farmers and create new jobs for the fast-growing youth population in East Africa,” said Nyaoke.

This partnership marks a strategic move not only for Irvine’s but for the broader agribusiness sector in the region.

With the establishment of the grandparent farm in Tanzania, Irvine’s will reduce logistical challenges and importation costs, enhancing the competitiveness of the poultry supply chain throughout Africa. 

The venture, which is being developed in partnership with Cobb, will also improve the reliability of poultry production, ensuring that the region has a consistent and affordable supply of protein.

Craig Irvine, CEO of Irvine’s Group, expressed optimism about the future of the business in East Africa. 

“These funds will fuel the next chapter of our growth, enabling us to continue our mission of changing lives in Africa by providing accessible, high-quality protein while empowering local businesses,” said Irvine. 

He also highlighted that chicken and eggs, being the most affordable sources of animal-based protein in the region, are essential to meeting the nutritional needs of East Africa’s growing population. 

For example, Kenya, one of the key markets for this expansion, is experiencing a steady rise in demand for poultry products. 

According to the Food and Agriculture Organization (FAO), about 50 million birds are slaughtered annually in Kenya, with 92.6% of the population regularly consuming chicken. 

Projections suggest that by 2050, poultry meat consumption will rise to 92,000 tonnes, while egg consumption is expected to reach 245,000 tonnes.

The investment is also expected to have ripple effects across the agricultural value chain. Irvine’s plans to increase its procurement of essential grains, including maize and soybeans, from local farmers. 

Additionally, Irvine’s plans to expand technical assistance and distribution networks for smallholder farmers, helping them increase their productivity and improve their livelihoods.

The deal was facilitated by Africa Insight Advisors, a boutique management consulting and transaction advisory firm based in Tanzania and Kenya.

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