Kenya’s ICTA launches $1.2-million fund for tech startups

A new initiative launched last week by Kenya’s Information Communication Technology Authority (ICTA) and the Netherlands Trust Fund phase III — a programme funded by the Dutch government — has signed a three-year funding project aimed at Kenyan ICT startups and SMEs.

The funding, according to TechCabal, is worth US$1.2-million and is aimed at enhancing the export competitiveness of Kenyan ICT companies.

The argument that African startups need venture capital cannot be repeated enough. Except for a few startups that have venture capital, the majority of African startups often have great ideas but not enough money to implement them into startups.

“Building the capacity of Kenyan tech companies hinges on our ability to not only put the right policies and strategies in place, but in forming definitive partnerships,“ Victor Kyalo CEO of ICT Authority said, “At the ICT Authority, we are honoured to partner with the Netherlands Trust Fund project in realizing our vision of being an ICT leader in Africa. I also congratulate the 33 companies that now have the opportunity to expand to other markets.”

A list of all 33 companies can be found here.

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The programme will support 33 Kenyan tech startups. Furthermore, it will assist SME’s with expansion and launching their businesses in foreign markets.

Some of the services the startups benefit from include insight into export marketing and access to finance and benefiting from “market linkages through facilitating B2B matchmaking events in Europe and Africa as well as participation in trade fairs organised in Kenya and/or target IT&ITES markets.”

The project is not only concerned with helping startups with funding but with the greater challenge of creating jobs. The ICTA states that the project is aimed at “creating jobs, increasing exports by Kenyan companies and empowering the capability of youth and women”.

This project is also a big step for Kenya’s tech industry, which in Africa is one of the fastest growing.

Joseph Tiampati, PS, Ministry of ICT, noted this and pledged the governments support for the industry “Kenya ICT business is already at the tipping point of Africa transformation. Many of our businesses have now expanded beyond our borders. As the government we are committed to supporting Kenyan businesses zeal to expand in an organised way.”