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Kenya, Kaluworks Aluminium Roofing

Supporting Kaluworks to access Kenya's capital markets; making durable aluminium roofing products affordable for low income families


The East African roofing market has historically been all about steel sheet roofing. For most people, aluminium has simply not been affordable.

But this versatile material has many advantages – not least because it is lighter and more durable. It lasts up to 50 years, compared to 10 years for steel roofing, and it is recyclable – a house-owner can sell her old roof to help fund its replacement.

Kaluworks in Mombasa, Kenya, started out in 1929, manufacturing family cookware. Growing into a leading manufacturer and distributor of aluminium cookware across East Africa, the company  diversified into aluminum sheet roofing, becoming the only manufacturer in the region.

With growth in the aluminium roofing market predicted at 30% between 2012 and 2015, as compared to 5.6% for the whole East African roofing market, the company has embarked on a step-change in production, to capture that market growth.  Kaluworks is not only expanding production but producing the finished product at a much  lower premium – typically just 10- 20% more than steel.  This will make aluminium a competitive roofing choice for a much wider market, including lower income families.

The deal

  • Total project investment is US$35.10 million, with US$23.1million provided by domestic Kenyan banks.
  • To finance the difference, Kaluworks issued a local currency bond on the Nairobi Stock Exchange, which successfully raised the remaining KSH 1.0 billion (US$12 million).
  • The company’s expansion programme is purely debt financed.

GuarantCo Support

The Kenyan bond market is well established and the Nairobi Stock Exchange has proved an attractive avenue to raise medium to long-term capital for many companies.  However, access to this wider pool of capital is generally only accessible for larger, corporate borrowers such as Safaricom and KenGen. Medium sized companies like Kaluworks are rarely able to take advantage of this source of finance.

Kaluworks’ local advisers recommended that, in order to access this wider pool of long-term finance, the company would need to obtain credit enhancement via a third-party guarantor. GuarantCo was approached to use its AAA local rating to help Kaluworks to raise US$9 million through a partial credit guarantee on the bond issuance.

GuarantCo’s support for Kaluworks provided a strong demonstration effect, helping a medium-sized company access capital markets which are typically only available to the largest corporates. The guarantee also made it possible to lengthen the tenor of financing to seven years from the typical five years.  This will help the company to offer its product at more affordable rates to the consumer

Expected Development Impact

Private Sector Investment

Total commitments



Fiscal benefits

Estimated contribution to government revenues through taxes from 2017 onwards – US$5 million per year

This was the first transaction where a third party guarantor was used to credit enhance a bond in Kenya – this precedent is expected to catalyse other such transactions.

Expanded production capacity of aluminium sheeting once plant in operation – 15,000 tons. Increase in production solely for domestic roofing – 60%

Job creation

Long Term




Many more jobs will be created through the company’s distribution networks

Additional Benefits

Number of additional people served – 225,000 people (assuming on average 100 metres of roofing is required per house)

20% of Kaluworks’ production is sold to people living below the poverty line, so an estimated 45,000 poor people will benefit.

GuarantCo’s guarantee support for this investment will assist in increasing production and improving availability and cost effectiveness of aluminium roofing across East Africa.