The UK government has set up a ksh 1.3 billion ($12.5 million) fund to support startups in Kenya. The announcement was made by Peter Estlin, the Lord Mayor of the City of London during a visit to Nairobi last week.
The fund will focus on Kenyan fintechs that increase financial inclusion for low-income and underserved consumers
According to Mr Estlin, “Today’s announcement highlights the mutual benefits of closer financial co-operation to both the UK and Kenya. By forging partnerships across Africa, the UK’s financial services sector can turbocharge national economies and empower individuals financially, creating thousands of jobs and enriching lives across the continent.”
Speaking during the announcement, the British High Commissioner to Kenya Jane Marriott said: “Kenya’s FinTech sector is strong, diverse and growing quickly. The innovators we met today show the future of Kenya’s economic growth and I am proud that the UK is able to support their work, helping create growth, jobs and the achievement of the Global Goals in partnership between our two countries.’’
The funds will be channelled through the Catalyst Fund which supports business development and investor opportunities for early stage fintech companies in emerging markets. With support from the UK Department for International Development, the Catalyst Fund will help connect a further 30 local fintech companies with international investors and mentors, including Kenyan fintech companies.
The fund will be managed by BFA, a consulting company headed by Amolo Ng’weno co-founder of Africa Online, East Africa’s first internet provider.
