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# [KENYA / AFRICA] Nairobi financial hub launches $500 million fund to back tech startups
- URL: https://businessoi.media/en/kenya-afrique-nairobi-finance-hub-un-fonds-de-500-millions-de-dollars-pour-les-startups-tech-kenyanes-en/
- Published: 2026-11-07T13:38:00.000Z
- Updated: 2026-11-07T13:38:00.000Z
- Description: NIFC launches a Sh65 billion ($500M) fund for Kenyan startups — $250M reserved for tech and AI. A direct response to the 45% plunge in startup funding in H1 2026.
- Author: Emmanuel TAOCHY
- Tags: Kenya, Startup, Investissement, Tech, Afrique, Clôture, #en

The Nairobi International Financial Centre (NIFC) announced on 6 November 2026 the creation of a **$500 million** (Sh65 billion) fund to finance Kenyan technology startups and SMEs. The initiative aims to reverse a sharp contraction in startup funding in the country.

## Half the capital earmarked for tech and AI

According to NIFC Chief Executive Daniel Mainda, **Sh32.5 billion** ($250 million) of the fund will be dedicated exclusively to technology and artificial intelligence startups. The remainder will target innovative companies in other sectors, including agritech, fintech, and knowledge-intensive services.

The fund structure aims to bring together local and international venture capital investors. The NIFC will lead fundraising and evaluate candidate companies, co-managing allocation with a professional fund manager currently being selected.

## An antidote to plunging funding

The announcement comes against a difficult backdrop. Kenyan startups raised only **Sh16 billion** in the first half of 2026 — a **45% drop** from the Sh29 billion recorded in the same period in 2025\. This contraction is part of a broader slowdown in Africa's startup ecosystem, as rising interest rates and increased caution among international venture capital funds take hold.

« Access to capital remains a major challenge for Kenyan startups, » said Daniel Mainda. The NIFC's ambition is twofold: inject liquidity into the local ecosystem and strengthen Nairobi's international appeal as an East African tech investment hub.

## Why it matters

Kenya already captures more than half of all ClimateTech funding in sub-Saharan Africa and ranks third on the continent for crypto transactions (DG Trésor, week of 2 November 2026). A private-sovereign fund of this scale, if realised, would position Nairobi as a credible alternative to Cairo and Lagos for startups seeking to raise capital from East Africa. For the Indian Ocean ecosystem, this represents an opportunity: several Mauritian and Réunion-based startups have already chosen Nairobi as their continental gateway.

*Sources: TechTrendsKe, TechAfrika, DG Trésor — 6 November 2026.*