McKinsey helps Kenyan biotech firm Kentegra secure $25 million in funding
A collaboration between US-Kenya biotech firm Kentegra and McKinsey & Company has unlocked over $25 million in funding, paving the way for massive job creation and economic growth for thousands of rural farmers across East Africa.
Kentegra, which specializes in producing organic insecticides from pyrethrum (Pale Refined Extract or PRE), faced the challenge of scaling its business sustainably while maintaining its deep commitment to eco-friendly practices and local communities.
The successful strategy refinement and fundraise are set to create over 300 direct jobs and benefit more than 20,000 local farmers with new or enhanced incomes through reduced risk and market stability.
Scaling impact, not just profits
Kentegra partnered with Manufacturing Africa, a flagship economic program developed with McKinsey & Company and funded by the UK government and the UK’s Foreign Commonwealth and Development Office (FCDO). This partnership focused on identifying growth options that would maximize both investor attractiveness and positive community impact.
“Understanding the strategic options for our growth pathway was critical in ensuring we not only expand our market presence but also deepen our social impact in a sustainable way that forms a symbiotic relationship between impact and business sustainability,” said David Payne, chief revenue officer and co-founder of Kentegra.
McKinsey was brought in to conduct a comprehensive commercial diligence analysis, evaluating opportunities for vertical, horizontal, and geographic expansion. That included potentially expanding product lines, manufacturing capacity, and markets across Africa for pyrethrum, a type of flower that is widely produced in Kenya and used as a pesticide.
Crucially, the consulting team helped Kentegra solidify its approach to Environment, Social, and Governance (ESG) reporting and corporate finance. This involved meticulously mapping the company’s impact, including job creation, water conservation through efficient irrigation, and the use of solar energy.
Linda Capwell, Kentegra’s head of marketing, communications, and investor relations, noted that the collaboration helped “refine our investor materials and ESG reporting, ensuring that we effectively communicate our mission and impact.”
A path to long-term resilience
With its newly devised strategy and financial model, Kentegra now looks forward to tripling its factory capacity, which will allow more than 90,000 farmers to contribute materials to the company’s operations as it scales.
This expansion relies heavily on hiring local personnel, creating stable manufacturing jobs that offer comparably high wages and consistent cash flow. For many families, this translates into children attending school and potentially gaining access to formal medical care for the first time.
“We want to collaborate with firms which take their social role seriously and are development drivers in their regions. Kentegra is a firm that thinks deeply about this and has a compelling commercial proposition alongside,” said Thomas Pascoe, Manufacturing Africa Team Leader with McKinsey & Company.
Kentegra’s success contributes directly to the wider achievements of the Manufacturing Africa program, which has already facilitated over $2.6 billion in foreign direct investment and helped create more than 110,000 direct and indirect jobs across six African countries.
By strengthening its supply chain through farmer training and community revitalization, Kentegra is fostering a resilient, sustainable ecosystem that promises long-term economic viability for the region.
Kentegra works with over 20,000 Kenyan farmers to produce high quality Pale Refined Extract, which is a liquid extract derived from dried pyrethrum flowers. It is an effective, natural insect repellent that is safe for humans and useful in agriculture and animal husbandry.
