The United States Agency for International Development (USAID) has disbursed over $26.1 million (Sh3.36 billion) in microloans to businesses in Kenya mainly aimed at mitigating the effects of climate change.
The funds disbursed to more than 13,000 Micro, Small, and Medium Enterprises (MSMEs) were channelled through the Impact for Northern Kenya Fund (INK Fund), a sustainable impact investment fund from USAID Kenya and East Africa in jointly with USAID Kuza.
AV Ventures Senior Investment Manager, who doubles as the local manager of the INK fund, Ronald Musundi, said that women entrepreneurs in Northern Kenya have taken up to 46 per cent of the funding.
“Because Northern Kenya Counties have in the past suffered effects of climate change such as prolonged droughts, the Fund has disbursed over $11 million (Ksh 1.4 billion) in climate financing to businesses implementing climate-smart practices,” said Musundi.
The funding is part of a broader initiative to drive investment in the region, focusing on counties such as Garissa, Isiolo, Mandera, Marsabit, Samburu, Tana River, Turkana, and Wajir.
According to stakeholders attending the Northern Kenya Impact Investment Conference, since 2022, the programme has generated 23,700 jobs in sectors including agri-processing, livestock, manufacturing, and renewable energy.
Principal Secretary in the Ministry of East African Community, ASALs and Regional Development Kello Harsama, asked investors to tap into sectors like tourism, mining, trade, and clean energy to further contribute to the transformation of Northern Kenya.
"We have the opportunity to explore investment in water management, infrastructure, renewable energy, tourism, livestock, and climate-resilient agriculture," she said.
The conference sought to explore innovative strategies to attract investments, create sustainable economic opportunities, and drive positive change across Northern Kenya.
It builds upon the successes of preceding county-level investment conferences in Turkana, Lamu, and Isiolo counties held earlier this year.
These conferences provided a key platform for stakeholders to convene and deliberate on the region's investment landscape at the county level.
According to a Regional Investment Plan prepared by the Frontier Counties Development Council (FCDC) in collaboration with USAID Kuza, there is immense potential for climate-smart agriculture, drought-resistant crop use, water resource management, and sustainable livestock keeping.
The plan notes that about 60 per cent of Kenya’s livestock populations are found in the arid and semi-arid lands (ASALs) region, presenting significant potential for value addition and manufacturing.
Other opportunities for investors looking to venture into northern Kenya lie in the tourism, mining, trade, and clean energy sectors.
