Kenya Launches Financing Facility to Support Indigenous Digital Platforms and MSMEs
The initiative, announced on March 17, 2026, in Nairobi, involves a loan portfolio guarantee agreement under the Digital Platforms Kenya (DigiKen) Programme, signed by the United Nations Capital Development Fund (UNCDF) and the Co-operative Bank of Kenya.
The Ministry of Information, Communications and the Digital Economy of Kenya has launched a landmark financing facility to support indigenous digital platforms and MSMEs, marking a major step in the country’s digital transformation. The initiative, announced on March 17, 2026, in Nairobi, involves a loan portfolio guarantee agreement under the Digital Platforms Kenya (DigiKen) Programme, signed by the United Nations Capital Development Fund (UNCDF) and the Co-operative Bank of Kenya.
Eng. John Tanui, ICT Principal Secretary, highlighted that the mechanism aligns with the Government’s Bottom-Up Economic Transformation Agenda (BETA), supporting pillars such as job creation and economic empowerment. He emphasised the central role of digital transformation in Kenya’s development, noting that over 40,000 kilometres of fibre optic cable have been deployed and that the eCitizen platform now serves over 16 million users, with roughly 500,000 accessing services daily without physical interaction.
The financing facility is designed to unlock capital for local startups and reduce barriers to growth by sharing risk, enabling lenders to provide funding to businesses that might otherwise struggle to access finance. Stephen Jackson described the initiative as a transformative approach to de-risking investment, while Ondřej Šimek reaffirmed the European Union’s support for small and medium-sized enterprises, particularly those developing digital platforms.
Vincent Marangu of the Co-operative Bank of Kenya welcomed the partnership, noting that it allows the bank to extend financing to more businesses while maintaining strong governance and credit discipline. Stakeholders described the initiative as a model for modern development financing, combining public institutions, development partners, and the private sector to spur ecosystem growth.
As Kenya continues to position itself as a regional technology hub, the DigiKen financing facility is expected to accelerate growth for indigenous digital platforms, expand opportunities for entrepreneurs, and contribute to economic empowerment across the country.
