To expand equitable financing for Micro, Small, and Medium Enterprises (MSMEs) in the marginalized Northern Kenya region, the Impact for Northern Kenya (INK) Fund, a sustainable impact investment fund from USAID Kenya and East Africa in collaboration with USAID Kuza has disbursed over $26.1 Million (Ksh3.37 billion) in microloans to over 13,000 enterprises.

This was announced during the Northern Kenya Impact Investment Conference held this week, highlighting a major turning point for small businesses operating in 10 counties namely Garissa, Isiolo, Lamu, Mandera, Marsabit, Samburu, Tana River, Turkana, Wajir, and West Pokot Counties.

As a result of the financing extended to businesses since 2022, the fund recorded 23,700 new jobs have been created in sectors such as agri-processing, livestock value addition, manufacturing, energy, and climate resilience.

Speaking during the Northern Kenya Impact Investment Conference, Ronald Musundi, Senior Investment Manager and Local Representative of AV Ventures, the manager the INK fund, noted the significant impact of the business's funding, particularly on historically marginalized groups such as women and youth.

“Women entrepreneurs in Northern Kenya have taken up to 46% of the funding, creating a wider social-economic impact in the communities. We are calling on local and international investors to seize the opportunity and participate in the economic revival of Northern Kenya by investing in sectors with enormous potential to create sustainable, long-term impact. 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,” Mr Musundi remarked.

The INK fund disburses loans through diverse institutions such as First Capital Ltd., Agricultural Finance Corporation, Solargen Technologies Ltd., Middle East Bank (Kenya) Ltd., Incredo Access Solutions Ltd., Centenary Micro Enterprise Services Ltd., Dot Capital, also DBA Linear Credit Ltd., Hello Tractor Kenya Ltd., and Mwangaza Microenterprise Ltd.

Kello Harsama, Principal Secretary in the Ministry of East African Community, ASALs and Regional Development noted: “As you are aware the ASALs constitute 80% of Kenya’s landmass and supports over 35% of the population, s 70% of the national livestock herd and 90% of our wildlife."

"We have the opportunity to explore investment opportunities in various sectors including water management and irrigation, infrastructure development, energy through solar and wind, tourism, livestock development and climate resilient agriculture. Each of these sectors holds the promise of creating jobs, enhancing value chains, food security, market provision as well as improving access to essential services," added the PS.

This year’s conference, under the theme "Unveiling Opportunities: Redefining Northern Kenya as an Investable Destination," 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 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 crops use, water resource management, and sustainable livestock keeping.

 The Plan notes that about 60 percent 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.