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.