Kenya’s Digital Economy Gains Momentum with New Startup Fund

Nairobi has emerged as a beacon of tech innovation in East Africa following the launch of a Ksh5 billion county-backed startup fund by Nairobi City County. Announced in February 2024, the initiative aims to support early-stage digital enterprises in fintech, agritech, and healthtech. Governor Johnson Sakaja said the fund would be managed in partnership with private incubators and the Kenya Private Sector Alliance (KEPSA). The move aligns with the county’s Digital Economy Blueprint 2023–2027, which seeks to create 50,000 digital jobs by 2027. Already, over 200 startups have expressed interest, with priority given to youth- and women-led ventures. The fund includes mentorship, cloud credits, and regulatory sandbox access. Industry experts welcomed the intervention, noting that access to early-stage capital remains a critical bottleneck. Kenya now hosts over 500 active startups, second only to Nigeria in Africa. The initiative is expected to catalyze inclusive growth and reduce urban unemployment, currently at 12.3% among youth.