More
    HomeEcosystem NewsUS DFC Pours New Funding into Kenyan Startups Following President Ruto’s State Visit

    US DFC Pours New Funding into Kenyan Startups Following President Ruto’s State Visit

    Published on

    spot_img

    The US International Development Finance Corporation (DFC) has unveiled a new financing package aimed at bolstering Kenyan startups and advancing key economic sectors. This announcement coincided with Kenyan President William Ruto’s state visit to Washington, D.C., underscoring a strengthened partnership between the United States and Kenya.

    DFC CEO Scott Nathan emphasized the strong ties between the two nations, stating, “The U.S. and Kenya have strong ties that include a robust relationship with the private sector. With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure.”

    In addition to the financial commitments, DFC plans to establish a regional office within the U.S. Embassy in Nairobi. This move is expected to significantly enhance DFC’s capacity to support private sector development not only in Kenya but across the entire African continent.

    Key Investments

    The newly announced financing package includes several multimillion-dollar investments in critical areas:

    • Digital Connectivity: A $51 million loan to M-KOPA Kenya Limited will facilitate the expansion of affordable smartphone access to underserved communities. This investment aims to bridge the digital divide and empower individuals with essential tools for communication and economic participation.
    • E-Mobility: DFC has allocated $10 million each to Mogo Auto Kenya and BasiGo to further advance e-mobility solutions in Kenya. This aligns with President Ruto’s Africa Green Industrialization Initiative and builds upon DFC’s existing support for sustainable transportation in the country.

    Recent Investments

    US DFC has also recently announced several other noteworthy investments in Kenyan startups:

    • Electric Vehicle Production: A $10 million loan to Roam Electric Ltd. will support the design, development, and deployment of electric motorcycles, buses, and charging infrastructure throughout the country.
    • Small Business Lending: A $500,000 technical assistance grant to Pezesha Africa Limited will enable the company to develop a credit scoring model, improving access to finance for small and medium-sized enterprises (SMEs).
    • Healthcare: DFC has provided a $10 million direct loan to Hewa Tele to enhance the supply of medical oxygen to healthcare facilities in Africa. Additionally, the corporation has invested $4 million in Kasha Global, an e-commerce platform offering personal care, healthcare, and beauty products to women in Kenya and Rwanda.
    • Agriculture: A $500,000 loan to Keep IT Cool, a business-to-business platform connecting fish farmers with buyers, and a $10 million loan to Kentegra Biotechnology to scale up its production of organic pesticide ingredients are among the investments aimed at bolstering the agricultural sector.

    These investments collectively underscore the US government’s dedication to partnering with Kenya to drive economic development, create jobs, and foster a sustainable future for the region.

    Latest articles

    Mobility Startup Zeelo Exits South Africa, Hands Reins to Ride-Sharing Rival LULA

    Zeelo, a US-based company that launched its South African operations in 2019, has decided to exit the market to focus on its core markets in the US, UK, and Ireland.

    Egypt’s dopay Secures $13.5M to Expand Digital Payroll Solutions for Underbanked Workers

    dopay’s expansion plans include the development of a self-financing lending model in collaboration with partner banks, which will leverage deposited funds to create a sustainable lending portfolio

    d.light Secures $176 Million to Expand Solar Access in East Africa

    The company’s PayGo model allows customers to pay for solar products in installments using mobile money.

    New US Parole Program Offers 5-Year Visa to African Startups with $260K+ Raised

    To qualify, entrepreneur must have a significant ownership stake (at least 10%) in a U.S.-based startup that was formed within the last five years.

    More like this

    Mobility Startup Zeelo Exits South Africa, Hands Reins to Ride-Sharing Rival LULA

    Zeelo, a US-based company that launched its South African operations in 2019, has decided to exit the market to focus on its core markets in the US, UK, and Ireland.

    Egypt’s dopay Secures $13.5M to Expand Digital Payroll Solutions for Underbanked Workers

    dopay’s expansion plans include the development of a self-financing lending model in collaboration with partner banks, which will leverage deposited funds to create a sustainable lending portfolio

    d.light Secures $176 Million to Expand Solar Access in East Africa

    The company’s PayGo model allows customers to pay for solar products in installments using mobile money.