NAIROBI, Kenya- This week, at the Northern Kenya Impact Investment Conference, a significant boost for Micro, Small, and Medium Enterprises (MSMEs) across Northern Kenya took center stage.
A total of Sh3.37 billion in micro loans was announced as part of the Impact for Northern Kenya (INK) Fund, a sustainable financing initiative by USAID Kenya and East Africa, in partnership with USAID Kuza.
This injection of capital is helping fuel thousands of MSMEs in sectors crucial to the region’s economy and resilience.
Since its inception, the INK Fund has issued loans to over 13,000 businesses across Northern Kenya, creating more than 23,700 jobs in industries like agri-processing, livestock, manufacturing, energy, and climate resilience.
Counties benefiting from this financing include Garissa, Isiolo, Lamu, Mandera, and Turkana, with each seeing measurable economic impact as a result of targeted funding.
The conference also spotlighted marginalized groups, with Ronald Musundi, Senior Investment Manager for AV Ventures (the firm managing the INK Fund), underscoring that 46pc of the loans have supported women-led enterprises.
“We call on local and international investors to join in the economic revival of Northern Kenya, especially in high-potential sectors that create sustainable, long-term impact,” Musundi said.
This strategic fund allocation reflects a vision of empowering diverse communities and fostering inclusive growth across the region.
Northern Kenya, a region with a history of climate challenges, is also seeing targeted support for climate-smart initiatives.
The INK Fund has earmarked over Sh1.4 billion ($11 million) for projects that enhance climate resilience.
This commitment to environmental sustainability extends to investments in clean energy and sustainable agriculture, aligning with Kenya’s national goals for climate adaptation and mitigation.
To help distribute these loans effectively, the INK Fund partners with financial institutions including First Capital Ltd., Agricultural Finance Corporation, and Mwangaza Microenterprise Ltd., ensuring a streamlined, accessible flow of funding to eligible businesses.
Themed Unveiling Opportunities: Redefining Northern Kenya as an Investable Destination, this year’s conference focused on sustainable investment strategies that can enhance economic resilience.
Kello Harsama, Principal Secretary in the Ministry of East African Community, ASALs, and Regional Development, emphasized the vast potential of Kenya’s arid and semi-arid lands (ASALs), which make up 80pc of the nation’s landmass and support 35pc of its population.
Harsama highlighted investment opportunities in areas like water management, solar energy, tourism, and climate-resilient agriculture, underscoring the region’s viability for long-term growth.
Looking ahead, the Frontier Counties Development Council and USAID Kuza have co-developed a Regional Investment Plan that spotlights opportunities for sustainable growth in Northern Kenya.
The plan outlines promising sectors such as climate-smart agriculture, water resource management, and sustainable livestock farming, serving as a roadmap for future development.
With initiatives like the INK Fund paving the way, Northern Kenya is transforming into a robust investment hub.
As these programs take root, they are set to redefine Northern Kenya’s economic landscape, creating a brighter future for businesses and communities alike.
