Kenya's Digital and E-Mobility Sectors Get $250 Million Boost from US DFC

During President William Ruto's State Visit to Washington in May 2024, the US International Development Finance Corporation (DFC) unveiled a substantial financing package of $250 million aimed at bolstering digital connectivity and e-mobility in Kenya.

As part of this initiative, DFC has made significant investments in various Kenyan enterprises. M-KOPA, a Nairobi-based digital financing company, secured a $51 million loan to enhance digital connectivity nationwide, particularly targeting underserved communities with affordable smartphones. The loan agreement was ceremonially signed by CEO Scott Nathan and M-KOPA Co-Founder and CEO Jesse Moore.

DFC highlights M-KOPA's commendable contribution, having already manufactured over 1 million smartphones locally. Plans are underway to expand local production facilities with support from both DFC and the Kenyan government.

In furtherance of e-mobility, DFC provided a $10 million loan each to Mogo Auto Kenya and BasiGo. Mogo Kenya, a financial institution specializing in vehicle loans, aims to advance e-mobility through its services. BasiGo, a Kenyan electric bus manufacturer, has recently commenced production in Kenya.

Additionally, Roam Electric received a $10 million loan from DFC to aid in the development of electric motorcycles, buses, and charging infrastructure within Kenya.

Pezesha Africa Limited, a digital financial enabler for SMEs, secured a $500,000 Technical Assistance grant from DFC to enhance credit scoring algorithms using advanced computing technologies.

These investments follow Kenya's presidential State Visit, during which President Ruto and President Biden celebrated and reinforced the longstanding partnership between the two nations, marking 60 years of official US-Kenya collaboration. This was detailed in the US government report, 'FACT SHEET: Kenya State Visit to the United States.'

Source: Ifeoma Joy Okorie / TechPoint Africa