County Supports SMEs Through Nairobi Innovation Fund

Nairobi County announced the establishment of the Nairobi Innovation Fund during the 6th SMEs Conference & Expo (March 26–28, 2025). The fund was created to provide financial support, mentorship, and innovation-driven training for small and medium-sized enterprises (SMEs). County officials emphasized that the initiative aligns with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes entrepreneurship and innovation as key drivers of inclusive growth.
The Innovation Fund focuses on bridging financing gaps that have historically limited SMEs from scaling their operations. It offers grants, low-interest loans, and incubation opportunities for startups and growth-stage businesses. By embedding innovation into SME development, Nairobi County aims to strengthen competitiveness, foster resilience, and position local enterprises to access regional and global markets.
Entrepreneurs and business associations welcomed the launch, noting that the fund addresses critical challenges such as limited access to capital, fragmented support systems, and low digital adoption. Analysts highlighted that the Nairobi Innovation Fund complements other initiatives such as the Business Digital Transformation Program (April 2025) and the Export Financing Platform (May 2025), creating a comprehensive ecosystem for SME growth.
Looking ahead, Nairobi County plans to expand the Innovation Fund to cover sectors such as agribusiness, creative industries, fintech, and green energy enterprises. Officials believe that by embedding innovation into SME financing, Nairobi can accelerate job creation, attract investment, and reinforce its role as East Africa’s entrepreneurial hub. If sustained, the Innovation Fund could serve as a model for other counties across Kenya, showcasing how local governments can drive SME transformation through targeted support.