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US and Kenya make progress on shared priorities: surpassing $1 billion in DFC exposure, intention to open Nairobi office

US and Kenya make progress on shared priorities: surpassing $1 billion in DFC exposure, intention to open Nairobi office

US and Kenya make progress on shared priorities: surpassing $1 billion in DFC exposure, intention to open Nairobi office

May 23, 2024, Washington DC – US International Development Finance Corporation (DFC) Chief Executive Officer (CEO) Scott Nathan announced a new funding package that supports Kenyan President William Ruto’s priorities for economic engagement with the United States, including new investments that take DFC’s exposure to more than $1 billion, as well as plans to open a DFC office within the African economic powerhouse.

“The United States and Kenya have strong ties that include a strong relationship with the private sector,” said CEO Nathan. “With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments in energy, electric mobility and infrastructure. DFC is also expanding its field presence by opening an office to help us better leverage opportunities across the region.”

The new DFC funding package of more than $250 million, announced as part of President Ruto’s state visit to Washington, DC, includes several multi-million dollar commitments for critical projects in Kenya, such as funding student rental housing new and affordable in Nairobi, reinforcing digital connectivity. across the country, and promote electric mobility and renewable energy, building on the DFC’s long-standing support.

These projects are among the most tangible demonstrations of the United States’ commitment to partnering with Kenya and the region, as well as DFC’s commitment to leveraging existing investments to create jobs and stimulate economic growth.

DFC is working to open a regional office at the US Embassy in Nairobi, CEO Nathan announced, which will support private sector development in Kenya and across Africa. The new office will significantly increase DFC’s business capacity and catalyze investment in vital sectors in Kenya and across the region.

CEO Nathan announced several new DFC transactions in Kenya during President Ruto’s visit, including:

  • Strengthen affordable student housing: A $180 million commitment to Acorn Holdings Limited that will fund the construction and operation of new, affordable student rental housing in Nairobi and across Kenya. With initial support from USAID and Prosper Africa and funding from DFC, this transaction will help address a critical need and is a clear example of the power of government-wide support for the private sector in its pursuit of projects that provide results. for the people of Kenya. CEO Nathan participated in a commitment signing ceremony alongside Acorn Holdings CEO Edward Kirathe.
  • Advancing digital connectivity: A $51 million loan to M-KOPA Kenya Limited that will support digital connectivity across the country by helping underserved communities access affordable smartphones. CEO Nathan joined M-KOPA Co-Founder and CEO Jesse Moore for the pledge signing ceremony.
  • Growing electric mobility sector in Kenya: A $10 million loan to Mogo Auto Kenya and a $10 million loan to BasiGo to promote electric mobility in Kenya, also in support of President Ruto’s Africa Green Industrialization Initiative, building on long-standing support dates DFC to the electric mobility economy in Kenya.

CEO Nathan also highlighted some of DFC’s recently announced transactions, which build on a more comprehensive DFC financing package in Kenya:

  • Boosting electric vehicle production in Kenya: A $10 million loan to Roam Electric Ltd. to support the design and development of electric motorcycles and buses, as well as charging stations for motorcycles and buses throughout Kenya.
  • Allow small business loans: A $500,000 technical assistance grant to Pezesha Africa Limited will provide business capital to leverage data science, machine learning and other advanced computing technologies to further develop its credit scoring algorithm, improving its sustainable small business lending practices in sub-Saharan Africa.
  • Partnership with the private sector in healthcare: A direct loan of $10 million to Kenyan company Hewa Tele provides a regular and affordable supply of medical oxygen to healthcare facilities in Africa, and two rounds of equity investment totaling $4 million to Kasha Global, a Kenya-based e-commerce company offering personal care. , healthcare and beauty products for low-income women in Kenya and Rwanda.

See the White House FACT SHEET: Kenyan State Visit to the United States for more.

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The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest in sectors including energy, healthcare, infrastructure, agriculture, and financial and small business services. DFC’s investments adhere to high standards and respect the environment, human rights and workers’ rights.  

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