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Lack of access to finance is universally regarded as one of the most significant constraints to economic development. Without affordable and appropriate capital, Northern Kenyan individuals and micro, small, and medium enterprises (MSMEs) are prevented from participating in the formal economy, capitalizing on business opportunities, investing in their livelihoods, and responding to shocks, such as natural disasters.

The population of Sub-Saharan Africa (SSA) is currently estimated at 1.2 billion people,1 and is projected to double by 2050. The continent’s smallholder farmers (SHF) account for 60% of the population,2 and produce 80% of the food consumed.3 These figures highlight the critical role that agriculture and SHF play in the continent’s food security and development.

Northern Kenya has significant opportunities for economic development, and access to finance is a key driver for the region’s sustainable growth. Unfortunately, the region is also burdened with negative perceptions, as Kenyan financial institutions deem it risky compared to other more economically developed parts of the country. Further, most plentiful and impactful Northern Kenyan investments are at the micro, small- and medium-sized enterprise (MSME) level.

This post was authored by Paul Newall, Senior Technical Director of Partnerships & Investment at ACDI/VOCA. 

This post was authored by Wyanie Bright, ACDI/VOCA's Chief of Party for USAID Kuza.

Globally, women are 18 percent less likely than men to own a smartphone. This statistic illustrates— particularly in low-income, rural households— the ‘gender digital divide’ where women are less likely to be connected to the Internet and have access to important tools that could improve their lives.

In Northern Kenya, county governments have a unique responsibility to support local development, as much of their population struggles with poor access to economic markets, frequent drought, and other challenges that perpetuate poverty and food insecurity in the country’s arid and semi-arid lands. Their efforts cannot succeed without the involvement of the community and often partners like USAID.

The pandemic and following economic shocks have underlined the importance of resilience at all levels of the economy, from national and local governments to your neighborhood business. Access to appropriate financial services is a key component of a resilient economy. Access to the right financial services at the right time can strengthen economic opportunities and support business growth.

In Kenya, the law governing cooperative businesses predates the 2010 Constitution. As a newly decentralized nation with 47 ‘distinct but interdependent’ counties, the 1997 national cooperative law needs to change to reflect the new government structure. What is harder to agree on is how. It is important to get it right because cooperatives are key contributors to Kenya’s economy.

This blog, written by John Chettleborough & Chris Henderson, Practical Action was originally posted on Vikāra Institute's website.

By Rob Henning, Technical Director, Finance and Investment, Palladium, and Aubrey Hruby, Transaction Lead, Finance and Investment, Palladium

Jane Wangige is a rice farmer in Kirinyaga County who has made money and improved her family’s livelihood from her rice farm. Her business prospered due to her membership in Mwea Rice Growers Multipurpose Co-operative Society (MRGM). MRGM is a farmer’s cooperative society that has accessed financing from USAID’s Kenya Investment Mechanism (KIM)—or specifically, a KIM partner financial institution, Co-operative Bank of Kenya.

By Carolanne Chanik, INVEST Communications Coordinator About an hour drive outside of the port city of Mombasa lies the coastal town of Ukunda, a modest road stop on the way to Kenya’s Diani Beach. On the outskirts of Ukunda are a smattering of general stores and auto repair shops to serve motorists and day travelers, and a coconut processing plant owned by Kentaste Products Limited.

The Opportunity – Massive Mango Production and Processing Potential Makueni County is Kenya’s top mango-growing region, producing more mangoes (38,000 metric tons per year) than any other county. With a short harvest season from November to March, more than 40% of production goes to waste due to processing and demand constraints. Further, mango farmers struggle with dramatic price fluctuations, including an annual collapse in mango prices during the peak production season in January.

FROM SILICON VALLEY STARTUP TO LANDMARK ACQUISITION Access to technology is an essential component to development, especially in Africa. Africans use cheap mobile phones to pay their bills, conduct small business, and make calls anywhere and everywhere. However, even a small mobile phone is not useful if power is not available to charge it. Eighty percent of African households lack electric power, which limits opportunities to access information and mobile money, as well as business and educational opportunities. 

By Emily Langhorne, INVEST Communications Specialist  

The COVID-19 pandemic and the measures national governments around the world are taking to contain it have created new challenges for families who were already vulnerable to a number of climate-related disaster risks. New research supported by USAID is learning whether investments in broadly based resilience helps families to withstand even this completely unexpected and global shock.

With support from USAID, the MRR Innovation Lab, The BOMA Project, and the International Livestock Research Institute (ILRI) collaborated on a resilence-focused project in Samburu that helps women to build up and keep their assets in spite of natural and manmade shocks. 

Learn how USAID’s Development Innovation Ventures grantees are adapting to the COVID-19 pandemic.

This post explores how global development organizations can mitigate food and agricultural systems during the COVID-19 crisis, using a market systems approach.

This post shares thoughts from Dr. Michael Kremer on an experimental approach to alleviating global poverty. Dr. Kremer directs USAID’s Development Innovation Ventures program and is a recipient of the Nobel Prize in Economics.

Nine projects are funded by NWO-WOTRO to strengthen the Netherlands-CGIAR research partnership on generating insights that contribute to improving seed systems in focus regions within Asia and Sub-Sahara Africa.

Power Africa teamed up with USAID INVEST to increase access to solar home systems and mini-grids across Kenya. Through Azuri Technology's pay-as-you-go-model, they are projected to provide 390,000 new connections and 6,000 upgraded connections across the country.

This post highlights two youth dairy farmers through Feed the Future Kenya Investment Mechanism Program with the support of USAID Kenya.

This post offers recommendations on managing the shifts in culture, management and partnering needed when a project shifts from providing direct services to a facilitative market systems approach.