Nairobi, Kenya – 24.09.2026 — The Co-op Bank of Kenya, in partnership with the United Nations Capital Development Fund (UNCDF), has introduced a new financing facility under the Digital Platforms Kenya (DigiKen) Programme to expand access to finance for technology-driven businesses and entrepreneurs across Kenya. The facility is designed to unlock growth opportunities, strengthen innovation and support job creation in Kenya’s rapidly evolving digital economy.
Supported through a USD 900,000 (KES 116.6 million) Loan Portfolio Guarantee Facility, with a maximum portfolio value of USD 1.8 million (KES 233.1 million), the facility targets four key segments of Kenya’s digital economy: FinTech companies, Digital Credit Providers, e-commerce and digitally enabled MSMEs, and Digital Innovation Hubs and ecosystem enablers. Through the partnership, Co-op Bank has developed tailored financing products to support working capital, business expansion, and technology investments within these segments, addressing the financing constraints that often limit growth and innovation among digital businesses.
Dr. Gideon Muriuki, Group Managing Director and Chief Executive Officer, Co-op Bank, said the facility responds directly to a financing gap facing the country’s digital entrepreneurs. “Kenya’s digital economy is creating exciting opportunities for businesses of all sizes, yet many entrepreneurs still struggle to access the financing needed to turn ambition into growth. Through this partnership, we are providing practical financing solutions that will help innovative businesses invest, expand and create jobs while strengthening Kenya’s competitiveness in the digital age.”
Omon Ukpoma-Olaiya, Regional Investment Team Lead for East and Southern Africa and the Arab States Region, UNCDF, added that the facility helps lenders reassess how they evaluate opportunity. “Many promising businesses struggle to access financing, not because they lack potential, but because they do not fit traditional lending models. Through this partnership, we are helping financial institutions take a fresh look at opportunity, unlocking capital for entrepreneurs who can drive innovation, growth and job creation.”
Eng. John Tanui, Principal Secretary, State Department for ICT and Digital Economy, welcomed the initiative as a contribution to the country’s digital transformation agenda. “A thriving digital economy depends not only on innovation, but also on access to opportunity. By improving access to financing, we are helping entrepreneurs and MSMEs turn ideas into businesses, strengthen local innovation and accelerate the realisation of Kenya’s Digital Superhighway Agenda.”
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The facility is expected to increase access to finance for digital enterprises and MSMEs, accelerate digital transformation, and create employment opportunities across Kenya — while strengthening economic inclusion for youth- and women-led enterprises and businesses in underserved communities.
The facility forms part of the broader Digital Platforms Kenya (DigiKen) Programme, implemented by UNESCO (Lead), UNCDF, UN Women and UNEP, in close coordination with the UN Resident Coordinator’s Office and in partnership with the Ministry of Information, Communications and the Digital Economy (MoICDE), with support from the Joint SDG Fund.
UNCDF absorbs a share of the credit risk on eligible loans Co-op Bank extends to qualifying digital businesses — covering 50 per cent of the outstanding principal, rising to 70 per cent for borrowers in Kenya’s Arid and Semi-Arid Lands (ASALs). Co-op Bank continues to originate, assess and manage all loans, with the shared-risk structure enabling financing for high-potential businesses that may not meet conventional collateral or credit-history requirements.
Announced ahead of the 81st UN General Assembly High-Level Week, the facility reflects growing efforts to expand financing for entrepreneurs and accelerate inclusive economic growth.
