The Nairobi International Financial Centre (NIFC) plans to establish a Sh65 billion (US$500 million) investment fund to support Kenyan startups and businesses struggling to access financing.
The proposed fund will target emerging businesses across different sectors, with technology and artificial intelligence (AI) startups expected to receive half of the total funding. The remaining amount will support other young businesses seeking capital to expand their operations.
The initiative will bring together local and international venture capitalists, with NIFC taking the lead in mobilising funds and identifying startups that qualify 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 so that we can deploy it into that segment,” said NIFC Chief Executive Daniel Mainda.
NIFC Chief Executive Daniel Mainda said the initiative aims to address the shortage of funding facing young businesses and create opportunities for them to grow. The centre has already started the process of identifying an organisation to co-host the fund and a suitable fund manager. According to Mainda, potential investors have expressed interest in supporting the initiative. Kenyan startups are experiencing a decline in funding from international investors.
In the six months to June 2026, local startups attracted Sh16 billion, representing a 45 per cent drop from the Sh29 billion raised during a similar period last year. The latest figure also marked the lowest funding recorded since 2021.
Through the proposed fund, NIFC hopes to attract more foreign investment while providing startups and small and medium-sized enterprises (SMEs) with the capital needed to expand and create employment opportunities. The centre was established to position Nairobi as a regional and international financial hub by attracting global financial institutions, investment funds and businesses.
Since becoming operational in 2022, NIFC has attracted approximately 40 companies, including international insurance firms Bupa Global and Lloyds of London. The centre has facilitated Sh26 billion in foreign direct investment and is targeting Sh650 billion in investments and at least 150 certified companies by 2030.
Companies operating under the centre also benefit from tax incentives and simplified licensing requirements, including reduced corporate tax rates for qualifying businesses.