U.S., Kenya Advance Shared Priorities – Surpassing $1bn in DFC Exposure, Intent to Open Nairobi Office » Capital News
WASHINGTON, D.C. May 24 – The U.S. International Development Finance Corporation’s (DFC) Chief Executive Officer (CEO) Scott Nathan has announced a new financing package that supports Kenyan President William Ruto’s economic engagement priorities with the United States. This package, which elevates DFC’s exposure above $1 billion, also includes plans to open a DFC office in Nairobi.
“The U.S. and Kenya have strong ties that include a robust relationship with the private sector,” CEO Nathan said. “With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure. DFC is also expanding its on-the-ground presence by opening an office to help us better pursue opportunities across the region.”
The more than $250 million new DFC financing package, announced during President Ruto’s State Visit to Washington, D.C., includes several multimillion-dollar commitments for critical projects in Kenya. These projects include financing affordable student rental housing in Nairobi, bolstering digital connectivity, and advancing e-mobility and renewable energy.
These projects are clear demonstrations of America’s commitment to partnering with Kenya and the region, as well as DFC’s dedication to creating jobs and spurring economic growth.
DFC is working to open a regional office at the U.S. Embassy in Nairobi, which will support private sector development in Kenya and across Africa. The new office will significantly increase DFC’s capacity for business and catalyze investment in vital sectors throughout the region.
During President Ruto’s visit, CEO Nathan announced several new DFC transactions in Kenya, including:
Bolstering affordable student housing: A $180 million commitment to Acorn Holdings Limited to finance the construction and operation of new, affordable student rental housing in Nairobi and across Kenya. This transaction, supported by USAID and Prosper Africa, highlights the power of U.S. Government support for private sector projects that benefit the people of Kenya. CEO Nathan participated in a signing ceremony alongside Acorn Holdings CEO Edward Kirathe.
Advancing digital connectivity: A $51 million loan to M-KOPA Kenya Limited to support digital connectivity by helping underserved communities access affordable smartphones. CEO Nathan joined M-KOPA Co-Founder and CEO Jesse Moore for a ceremonial signing of the commitment.
Growing Kenya’s e-mobility sector: A $10 million loan for Mogo Auto Kenya and another $10 million loan for BasiGo to advance e-mobility in Kenya, supporting President Ruto’s Africa Green Industrialization Initiative and building on DFC’s longstanding support for the e-mobility economy in Kenya.
CEO Nathan also highlighted recent DFC transactions, which complement the comprehensive financing package in Kenya:
Driving electric vehicle production: A $10 million loan to Roam Electric Ltd. to support the design and development of electric motorcycles and buses, as well as charging stations throughout Kenya.
Enabling lending to small businesses: A $500,000 Technical Assistance grant to Pezesha Africa Limited to leverage data science, machine learning, and advanced computing technologies for developing its credit scoring algorithm, enhancing sustainable lending practices to small businesses in Sub-Saharan Africa.
Partnering with the private sector in healthcare: A $10 million direct loan to Kenyan company Hewa Tele to provide an affordable and regular supply of medical oxygen to healthcare facilities in Africa, and two rounds of equity investment totaling $4 million to Kasha Global, a Kenya-based e-commerce company providing personal care, healthcare, and beauty products to low-income women in Kenya and Rwanda.
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