The Nairobi International Financial Centre (NIFC) plans to set up a Sh65 billion ($500 million) fund for Kenyan businesses, with half — about $250 million — earmarked for technology and AI startups.
The rest would go to small and medium-sized businesses in other sectors. The fund would pool local and international venture capital, with NIFC leading fundraising and assessing companies for investment.
“Access to capital is a challenge for Kenyan startups, so how can we provide capital for these startups? That’s why we want to co-host a fund of $500 million,” NIFC chief executive Daniel Mainda said in an interview.
The fund is still at proposal stage. NIFC has begun selecting an organisation to co-host it alongside a professional fund manager, and Mainda said investors had shown interest. No commitments or timeline were disclosed.
A funding gap to fill
The plan comes as Kenyan startup funding falls sharply. Startups raised Sh16 billion in the six months to June 2026, down 45% from Sh29 billion a year earlier — the weakest first half since 2021 — as international investors grow more selective.
A wider push
The fund extends NIFC’s role from attracting financial institutions to channelling money into the Kenyan economy. Since becoming operational in 2022, the centre has drawn about 40 companies, including Bupa Global and Lloyd’s of London, offering certified firms reduced corporate tax rates in exchange for minimum investment and local-management requirements.
NIFC says it has facilitated Sh26 billion ($200 million) in foreign direct investment and is targeting Sh650 billion ($5 billion) and 150 certified companies by 2030.
