DEG finances Selecta One’s sustainable plant production in Kenya

Kenya’s climate makes it ideal for growing ornamental plants. The sector is a key economic factor within the country itself as well as playing a central role in the global market for ornamental plants and cut flowers. It is also instrumental in creating new jobs and improving living conditions on the ground.

To continue leveraging this potential sustainably, DEG is providing the Selecta One Group – a leading German grower and producer of ornamental plants – with total financing of EUR 3.1 million as part of its ImpactConnect programme. Since as far back as 1999, the Stuttgart-based company has been active with its subsidiary Selecta Kenya in the Kenyan highlands, where it produces cuttings and plants for the international market.

DEG has been providing Selecta Kenya with financial support and advice for many years. Back in 2014, it provided a loan using funding from its own resources for expanding the company’s production activities in Kenya. At the same time, it supported a range of accompanying measures, including health counselling for female employees as part of the HERhealth initiative and a feasibility study for switching to solar power.

As Volker Schwab, the responsible Senior Investment Manager at DEG, explains: “We are delighted to be able to provide an ImpactConnect loan to Selecta – a family-run German company that is known for its high levels of innovation and social responsibility – for further investments in Kenya.” This new financing will be used to further modernise the company’s operations, for instance by adding new greenhouses with state-of-the-art ventilation technology and further expanding the use of solar energy. This will make production even more efficient while also significantly lowering resource consumption.

The high social standards met by Selecta Kenya are confirmed by a MPS-SQ certification, which evaluates working conditions, occupational health and safety, employee rights and other factors. Over 1,500 employees benefit from secure jobs, good pay and extensive additional benefits. Around two thirds of the workforce are women, who are actively assisted in their professional development. The most recent ImpactConnect investment also contains measures for further improving professional upskilling and medical care for employees.

Through its involvement, DEG is helping to facilitate Selecta Kenya’s sustainable long-term growth while also strengthening local economic development.