US initiative helps Kenyan businesses to access financing - KBC

The USAID Kenya Investment Mechanism expects to mobilize $400 million of investments in key sectors of Kenya’s economy in the next five years.

The beneficiaries will be small and medium-sized enterprises seeking capital to inject into their businesses.

Already 12 investment enterprises seeking a combined total of $50 million in capital presented their innovative opportunities to investors during the “Invest in Kenya” session at the Sankalp Africa Summit 2020.

“We have prepared these enterprises and are giving them an opportunity to pitch their business to investors,” explains Roger Bird, the Kenya Investment Mechanism’s Chief of Party. “We expect that these introductions will result in 10 million dollars of new investments.”

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The Feed the Future Kenya Investment Mechanism, a United States Government program, provides investment opportunities for companies in the agribusiness, energy technology, fintech, and other sectors.

The program is funded by USAID as part of Feed the Future, a global hunger and food security initiative.

In just over a year, the program has built a network of transaction advisors and financial institutions that have mobilized $34.6 million of investments in Kenyan enterprises.

USAID Kenya and East Africa’s Office of Economic Growth and Integration Director Scott Cameron says, “through the USAID Kenya Investment Mechanism, we are supporting Kenyan businesses that are struggling to access capital for growth and helping them become sustainable.”

The Kenya Investment Mechanism seeks to enable broad- based, sustained, and inclusive economic growth in Kenya by mobilizing substantial capital from the public and private sectors and building partnerships among enterprises, advisors, and financial intermediaries.

Goshen Farms which provides a sustainable and inclusive market for smallholder farmers, and minimizes post-harvest food losses was one of the Companies that presented their business ideas.

Others include Livestock Trade Services, Modern Ways, as well as Ten Senses.

Ten Senses CEO, Frank Omondi said the interactions with the investors were an eye-opener, exuding confidence that they will get funds to boost their business.