The United States government, through the Development Finance Corporation (DFC), has announced a series of strategic investments aimed at fostering sustainable growth and development across various sectors.
These initiatives were highlighted through a White House communication following President Ruto’s state visit to the US.
The cornerstone of these investments is an approximately KES 23.85 billion loan to Acorn, a leading real estate developer in Kenya. This substantial injection of capital is set to fuel Acorn’s ambitious plans to construct and manage affordable student housing, thereby addressing critical housing needs while championing environmentally sustainable practices.
The White House communication underscored the broader impact of this investment, stating, “The DFC investment is expected to catalyze an additional $360 million in local Kenyan investment, paving the way for one of the largest green housing portfolios in Africa.”
In the financial sector, DFC has earmarked a KES 66.25 million technical assistance grant to Pezesha Africa Limited. This grant aims to bolster Pezesha’s capabilities in credit assessment, thereby enabling the company to better serve micro, small, and medium-sized enterprises (MSMEs) in Kenya. By enhancing access to finance for retail trade microenterprises, Pezesha seeks to promote economic inclusivity and entrepreneurship within the country’s vibrant informal sector.
In the realm of technology and agriculture, DFC’s investments are poised to drive transformative change. Keep IT Cool, a Kenyan-based business-to-business platform, has received a KES 66.25 million loan to expand its operations. This investment will facilitate the integration of cold chain technology, enabling fish farmers to connect with buyers more efficiently while ensuring the preservation of quality and freshness.
Furthermore, DFC has allocated a KES 1.33 billion second loss guarantee to the African Fertilizer and Agribusiness Partnership, Inc. This guarantee is expected to unlock up to $360 million in additional fertilizer sales across Kenya, Zambia, and Ghana over the next three years. By providing access to fertilizer on credit for small and medium-sized agri-input suppliers, the initiative aims to bolster food security and agricultural productivity, thereby supporting livelihoods and economic development in rural communities.
Additionally, Kentegra Biotechnology in Kenya has secured a KES 1.33 billion loan from DFC to scale up its production capacity of pale refined pyrethrum extract, a key ingredient in organic pesticides. This investment not only promotes agricultural innovation but also empowers women farmers by providing them with access to training and financial resources.
