The Nairobi International Financial Centre (NIFC) announced on November 6, 2026 the launch of a $500 million fund — equivalent to 65 billion Kenyan shillings — to finance Kenyan startups. Half of the envelope, $250 million, will be reserved for tech and artificial intelligence companies.
A fund born from necessity and ambition
The initiative comes against a difficult backdrop for Kenya's startup ecosystem: in the first half of 2026, fundraising reached 16 billion shillings, a 45% drop compared to the 29 billion raised in the same period in 2025 — the lowest first-half figure since 2021. «International investors are becoming increasingly selective towards Africa,» acknowledges Daniel Mainga, CEO of the NIFC.
The fund aims to fill this gap by mobilising local and international venture capital around an institutional vehicle co-managed by a professional fund manager that the NIFC is currently selecting.
Nairobi positions itself as Africa's tech hub
The NIFC has already attracted around 40 companies since its creation in 2022 and facilitated approximately $200 million in foreign direct investment. By 2030, the ambition is bold: $5 billion in FDI and at least 150 certified companies. Priority sectors include enterprise software, fintech, mobile payment services, cloud and cybersecurity.
A powerful tax incentive underpins the strategy: NIFC-certified companies benefit from a 15% corporate tax rate for ten years, then 20% for the following decade — compared to the standard 30% rate. Key players already present in the ecosystem include Safaricom (4.5 million merchants, +90.3% in six months) and cloud partnerships such as Liquid C2 with Google Cloud.
Why it matters
For the Indian Ocean region and East Africa, the signal is clear: Nairobi intends to cement its role as the continent's financial and technology capital. In a context of tightening global capital, a state's ability to structure its own financing instruments becomes a decisive competitive advantage for attracting talent and investment.