Launch of Financing Facility to Unlock Growth for Indigenous Digital Platforms and MSMEs

Nairobi, Kenya – 17th March, 2026

The Ministry of Information, Communications and the Digital Economy today welcomed the signing of a landmark financing mechanism that will unlock capital for local digital platforms and startups, marking a significant milestone in Kenya's digital transformation journey.

ICT Principal Secretary Eng. John Tanui,CBS presided over the signing ceremony, where the United Nations Capital Development Fund (UNCDF) and the Co-operative Bank of Kenya formalised loan portfolio guarantee agreement under the Digital Platforms Kenya (DigiKen) Programme.

In his keynote address, Eng. Tanui underscored that the financing mechanism is fully aligned with the Government's Bottom-Up Economic Transformation Agenda (BETA), particularly its five key pillars on job creation and economic empowerment.

"Digital transformation remains central to Kenya's development strategy, guided by the National Digital Masterplan. We have made significant progress in building the foundations of a digital economy," said Eng. Tanui.

He highlighted the Government's achievements in digital infrastructure, noting that over 40,000 kilometres of fibre optic cable have been laid across the country to expand connectivity. He further stated that the eCitizen platform now serves over 16 million users, with approximately 500,000 Kenyans accessing services daily without physical interaction.

"These are not just numbers—they represent a fundamental shift in how citizens engage with government services," he said.

Eng. Tanui emphasised the growing importance of digital platforms as drivers of economic expansion, noting that in some countries, the digital economy contributes up to 30 per cent of GDP. He stressed that Kenya is positioning itself to achieve similar outcomes by supporting homegrown, indigenous digital platforms that can scale locally and regionally.

"Our focus is on building solutions that are local, inclusive, and relevant. Digital platforms provide a powerful opportunity, especially for young people, to participate in and benefit from the economy," he added.

UN Resident Coordinator Stephen Jackson described the mechanism as a transformative approach to addressing one of the biggest barriers facing startups—access to finance.

"This is about reducing risk in order to unlock opportunity. By sharing risk, we enable lending to businesses that would otherwise struggle to access capital, while maintaining strong financial discipline," Jackson said. He noted that the initiative is also intended to shift perceptions of the digital sector as high-risk, demonstrating instead its viability and long-term potential.

EU Deputy Head of Mission, Ondřej Šimek reaffirmed the European Union's commitment to supporting small and medium-sized enterprises, particularly those developing digital platforms.

"Many innovative companies face challenges not because of a lack of demand, but because they cannot access the capital needed to grow. This initiative will help unlock that growth while also contributing to job creation," he said.

Vincent Marangu, Director of Co-operative Banking Division at Co-operative Bank of Kenya, welcomed the partnership, stating: "This partnership allows us to extend financing to more businesses while upholding the strong governance and credit discipline that define Co-operative Bank. Our goal is to widen the circle of opportunity for enterprises that are ready to grow."

Stakeholders at the ceremony described the initiative as a model for modern development financing, bringing together public institutions, development partners, and the private sector to de-risk investment and unlock growth.

With Kenya continuing to position itself as a regional technology hub, the mechanism is expected to accelerate ecosystem growth and expand opportunities for entrepreneurs across the country.