Kenya Unveils Financing Facility to Boost Digital Startups and MSMEs

By Moses Punyuah, Nairobi 

The government has launched a new financing mechanism aimed at unlocking capital for local digital platforms and small businesses, in a move to accelerate Kenya’s digital economy.

Speaking during the signing ceremony, ICT Principal Secretary John Tanui said the initiative aligns with the government’s development agenda and will expand opportunities for young entrepreneurs.

“Digital transformation remains central to Kenya’s development strategy… We have made significant progress in building the foundations of a digital economy,” said Tanui.

The agreement, signed between the United Nations Capital Development Fund and Co-operative Bank of Kenya under the DigiKen Programme, will support startups that often struggle to access financing.

UN Resident Coordinator Stephen Jackson said the facility will help reduce lending risks and unlock growth for digital enterprises.

“By sharing risk, we enable lending to businesses that would otherwise struggle to access capita

l,” he said.