NIFC Proposes US$500 Million Fund for Kenyan Startups, Still at Proposal Stage

Nairobi International Financial Centre (NIFC) plans to raise a Sh65 billion (US$500 million) fund for Kenyan startups and small businesses. The fund is a proposal and a fundraising target. Public reporting so far shows no capital raised, no named co-host or fund manager, no investor commitments and no application process.

What is proposed

According to Business Daily, NIFC will set up the fund, which would be financed by international and local venture capitalists. NIFC would lead fundraising and the selection and assessment of beneficiary companies. Half would go to technology and artificial intelligence startups; the rest would finance other businesses.

NIFC chief executive Daniel Mainda told Business Daily: “That’s why we want to co-host a fund of $500 million so that we can deploy it into that segment.” NIFC has not yet chosen a co-host or fund manager. Mainda said selection had begun and that investors were ready to put money in. Business Daily named no investors, and no commitments have been announced.

What is not yet known

Public reporting does not yet set out the fund’s legal structure, eligibility rules, financial instruments, pricing, investment timeline or first close. It is not clear whether the fund would back only Kenyan-registered companies. Xtra Africa and iAFRICA describe the tech and AI share as about US$250 million; that is a proposed allocation, not a commitment to any company.

Dealroom reported that Mainda outlined a US$250 million tech and AI fund at the Africa Blockchain Festival on 27 October. Public reports do not establish whether that is the same vehicle as the November proposal.

No official NIFC or National Treasury release on the fund was located when this article was prepared. It relies on Mainda’s interview with Business Daily, his LinkedIn post and secondary coverage.

Why capital access is the pressure point

Data from Africa: The Big Deal, reported by Capital FM and Business Daily, put Kenyan startup funding at Sh16.3 billion (US$126 million) in the first half of 2026. That was the weakest first half since 2021.

Outlets differ on the year-earlier comparison. Business Daily’s August report gave Sh29.37 billion for the same period of 2025; Capital FM gave Sh17 billion. We have not reconciled the two, so this article does not state a single percentage decline.

Track-record figures differ

Business Daily reports that NIFC “has attracted about 40 companies” since 2022 and has facilitated Sh26 billion (US$200 million) in foreign direct investment from the firms it has certified. It targets Sh650 billion (US$5 billion) in FDI and at least 150 certified firms by 2030.

In a LinkedIn post about #NIFCHorizon2026, Mainda cited 22 certified firms. He wrote that certified firms “are expected to facilitate over USD 200 million” in foreign direct investment. Public reporting does not reconcile these figures. “Facilitated” and “expected” describe different things, and this article does not treat the 40 companies as certified firms.

Until a co-host, a fund manager and a first close are announced, the fund is a plan rather than money available to startups.