Published: May 2026 | Business & Technology News.
Kenya has taken a significant step toward strengthening its digital economy by launching a new financing mechanism to unlock capital for local digital platforms and technology-enabled businesses.
The agreement, signed between the United Nations Capital Development Fund and the Co-operative Bank of Kenya, introduces a loan portfolio guarantee aimed at expanding access to finance for micro, small, and medium enterprises operating within Kenya’s growing digital ecosystem.
Reducing Risk to Unlock Opportunity
Speaking at the event, the United Nations Resident Coordinator in Kenya framed the initiative as a practical response to the challenge of accessing affordable financing. He explained that by sharing risk, the program enables lending to businesses that would otherwise struggle to access capital, while maintaining strong financial discipline.
At the heart of the DigiKen programme is what partners describe as a deal room approach, which connects promising entrepreneurs with financial institutions while strengthening their readiness to absorb investment.
Expected Impact
The initiative is expected to unlock millions of dollars in private sector financing in the immediate term, with the potential to catalyse significantly larger investment flows as the model matures. The programme also aims to support the development of a pipeline of at least 150 investment-ready digital enterprises.
The focus on digital enterprises is particularly important because many technology-enabled businesses struggle to access traditional bank financing. Banks often view digital startups as risky due to their lack of physical collateral, limited operating history, and unconventional business models. The loan portfolio guarantee reduces this perceived risk, making it easier for digital entrepreneurs to access the capital they need to grow.
Mobile Money Agent Network Expands
In a separate development, Kenya’s mobile money agent network has crossed the 500,000 mark for the first time, reaching more than 507,000 active agents. The network started with just over 300 agents when mobile money launched nearly two decades ago, making it one of the largest financial distribution networks in Africa.
However, transaction value through agents has declined as more Kenyans move money directly between wallets without visiting an agent. Rising smartphone penetration means that customers can now perform most transactions from their phones without needing to find an agent.
Safaricom dominates the mobile money infrastructure, holding the majority of mobile money subscriptions, while Airtel Money operates approximately 150,000 agents. The extensive agent network remains important for cash deposits and withdrawals, particularly in rural areas where smartphone penetration is lower.
Kenyan Startup Selected for Qualcomm Mentorship Program
ZeroBionic, a Kenyan startup known for developing assistive robotics solutions designed to enhance independence and inclusion for persons with disabilities, has been selected for Qualcomm’s 2026 Make in Africa Mentorship Cohort.
The startup was chosen among 10 other innovators from over 1,200 applications submitted from more than 45 African countries. Other startups selected alongside ZeroBionic represent Nigeria, Ghana, Uganda, Tanzania, Zambia, Namibia, and Zimbabwe, working across sectors such as agriculture, water access, and electricity.
The inclusion of a Kenyan startup in this year’s cohort reinforces Kenya’s position as a leading hub for technology and innovation in Africa, with local entrepreneurs increasingly building solutions that address real-world challenges in sectors such as healthcare, agriculture, and smart infrastructure.
Participants in the program will receive hands-on mentorship, engineering consultation, access to tools that support product development, and eligibility for funding opportunities, including cash stipends and support for patent filing.
A Qualcomm executive stated that the quality and ambition of the cohort reflect the rapid growth of Africa’s innovation ecosystem.
Kazakh-Kenya Cooperation on AI and Space Technologies
On the international front, Kazakhstan and Kenya have agreed to share experience in artificial intelligence, information, and space technologies. The Kazakh President announced that memoranda signed in the field of IT and space technologies will pave the way for a productive, long-term partnership between the two countries.
Kenya is widely known as the Silicon Savannah of Africa, the Kazakh President said, pointing out the importance of cooperation on AI and digitization. He also invited Kenyan companies to use the Astana International Financial Center’s capabilities to expand their business presence in Central Asia and beyond.
