Kenyan corporates are being urged to increase their strategic investment in local startups to address a widening funding gap, despite the country's reputation for innovation. A new report, the Corporate Venture Capital (CVC) State of Play in Kenya, highlights a significant lack of local corporate participation in venture financing.

• Global CVC funding reached $130 billion in 2024, nearly doubling 2017 levels, while Kenyan corporate engagement remains low.
• Africa's early-stage businesses face an annual funding gap of $194 billion, equivalent to about 7% of the continent's GDP.
• The report was launched in Nairobi by the UK-Kenya Tech Hub and ViKtoria Ventures as part of the Angel Leads Program.

Sycamore Capital Limited's Cashlet App has received approval from the Capital Markets Authority (CMA) to connect retail investors with licensed fund managers for investments in Collective Investment Schemes (CIS) in Kenya.

• The approval follows the app's admission into the CMA Sandbox on July 9, 2021, where it was tested as a fully digital platform for aggregating retail investors and enabling seamless investments into multiple unit trusts.
• The CMA also licensed Jipay Payment Solutions Limited as an Intermediary Service Platform Provider (ISPP), further strengthening digital innovation and financial inclusion in Kenya's capital markets.
• The CMA stated these approvals are part of its strategy to support homegrown fintech innovations that expand participation in capital markets, enhance investor protection, and advance Kenya's digital financial inclusion agenda.

Leading Kenyan banks and insurers have pledged increased support for climate-smart financing to protect the nation's building sector from growing climate risks. This commitment was made during a high-level forum in Nairobi, emphasizing sustainable financing as crucial for infrastructure protection, green job creation, and risk reduction.

• Kenya's National Buildings and Construction Decarbonization Roadmap targets near-zero emissions buildings by 2030.
• Key financial institutions involved include Kenya Commercial Bank (KCB), Absa Bank, Co-operative Bank, NCBA, Stanbic, DTB, and mortgage lenders like HFC.
• Insurers such as Britam, Madison, GA Insurance, and Orient Life also outlined plans to support resilient building investments.
• Absa Bank's Head of Mortgages Business, Beatrice Chege, noted the introduction of sustainable mortgage products to promote certified green buildings.