Why Northern Kenya counties present a strategic opportunity for impact investors

The second Northern Kenya Impact Investment Conference is scheduled to take place on September 21, 2023 in Nairobi. The theme of this annual event, is “Why Northern Kenya, why now?”

The conference host, USAID Kuza says this is a platform to present investment opportunities and attract investors to the region. 

Citizen Digital spoke to Venny Mayaka, the Deputy Chief of Party - USAID Kuza on the goals of the conference and USAID Kuza’s vision for Northern Kenya.

Q1: Why Northern Kenya and why now?

A: Northern Kenya is full of investment opportunities! The region boasts of abundant untapped resources, from renewable energy potential to fertile lands for agriculture to a vibrant culture and rich biodiversity. Northern Kenya is ripe for impact investors looking to generate both financial returns and make positive social and environmental impact.

Q2: What unique opportunities are in northern Kenya for investors?

A: Northern Kenya is increasingly attractive to investors due to its strategic importance and untapped potential. The region's geographical location is pivotal for various industries, such as logistics and energy, as it serves as a gateway to the East African market and offers proximity to key transportation routes.

Because it is still largely unexplored, Northern Kenya presents investors with a first-mover advantage. As the region undergoes transformative changes and economic growth accelerates, early investors have the opportunity to establish a strong foothold, build influential networks, and capture the potential for high returns on investment.

Q3: What have been the key challenges hindering investments in the northern region?

A: The most significant hindrance to investments in the region is funding. Small and Medium-sized Enterprises (SMEs) in the region often struggle to access the capital they need to start or expand their businesses. The funding gap can be attributed to various factors including the perceived higher risk associated with investing in the northern region and inadequate collateral for traditional lenders.

To address this challenge, there is a need for innovative financing mechanisms such as the Impact for Northern Kenya Fund, impact investment funds, venture capital, and microfinance institutions to bridge the funding gap for SMEs in the northern Kenya region.

Q4: How have communities in Kenya been involved in the decision-making process of impact investment projects in their region?

A: Communities in Northern Kenya have increasingly played a pivotal role in the decision-making process of impact investment projects, fostering a sense of ownership and sustainable development.

One notable example is the USAID Kuza Project, which empowers local populations through policy development, training, mentorship, and financial support, allowing them to actively participate in project planning and execution.

Beyond USAID Kuza, numerous grassroots organizations and cooperatives across Northern Kenya have engaged in community-driven initiatives, ranging from agricultural cooperatives that empower smallholder farmers to eco-tourism projects that promote conservation and community well-being. These initiatives reflect a growing trend in Northern Kenya, where local communities are actively shaping the trajectory of impact investments 

Q5: Are there opportunities for public and private sectors to work together towards driving the impact of investment in northern Kenya?

A: The public, private and development sector can establish robust investment partnerships that leverage the strengths of all entities.

This entails fostering an environment where small and medium-sized enterprises (SMEs) can thrive, with the government providing crucial support in terms of infrastructure development, regulatory incentives, and access to finance.

Local knowledge and community engagement should be integral, ensuring that projects align with the region's unique needs and cultural sensitivities.

This collaboration will not only drive sustainable growth but also promote inclusive economic development in Northern Kenya, benefitting both the public and private sectors and improving the overall well-being of the local population.

This is why we are inviting all those interested for the 2023 Northern Kenya Impact Investment Conference to Register ( https://t.co/pnqSGRsSnx ) for a highly engaging discussion on the status of the investment environment, an exploration of available opportunities and brainstorming on how to address the constraints that hinder investments in Northern Kenya.