TikTok unveils Ksh.230M fund to invest in Kenyan social businesses

Leading social networking app TikTok on Wednesday announced a partnership with Yunus Social Business (YSB), a non-profit organization dedicated to fostering 60 social businesses.

The transformative $1.5 million (approx. Ksh.230 million) partnership aims to make financial investments in selected social enterprises while offering training and mentorship to others in areas such as brand building, sales/e-commerce, and leveraging digital platforms for business success.

Youth Affairs, Creative Economy, and Sports Cabinet Secretary Ababu Namwamba, who was the event Chief Guest, commended TikTok for its impactful contribution that extends beyond entertainment and social interaction.

He also recognized the platform for influencing various aspects of society, education, and philanthropy, establishing itself as an impactful organization.

"TikTok provides a platform for individuals from diverse backgrounds to share their stories, talents, and creativity. It has also empowered creators to express themselves, build communities, and find their voices, fostering inclusivity and diversity,” noted the CS.

"The collaboration between TikTok and Yunus Social Business (YSB) represents a pivotal effort to leverage business solutions for social good; it will help address the ‘missing middle’ problem for entrepreneurs by providing long-term, low-interest loans and growth support to social businesses, small and medium enterprises in Kenya and the wider East Africa region.”

The first beneficiary of the partnership was BURN Manufacturing, which was presented with a $450,000 (approx. Ksh.69 million) cheque by CS Namwamba.

BURN produces clean cookstoves that consume less fuel, cook faster, emit fewer fumes, and save families upto about $150 (approx. Ksh.23,000) per year.

TikTok Sub-Saharan Africa’s Director of Government Relations & Public Policy Fortune Mgwili-Sibanda, on his part, stated: "This partnership with YSB represents a transformative opportunity to empower entrepreneurs, address social challenges, and drive sustainable economic growth in Kenya and East Africa.

We have seen the profound impact and real-world opportunity that TikTok brings to small businesses around the world, and we are proud to foster this entrepreneurial spirit and digital innovation in Africa. The creative economy is a key priority for Kenya and this is the time to amplify these opportunities as we celebrate Kenya at 60.”

YSB’s Regional Director for East Africa, Susan Ngalawa, noted that while the organisation has a strong legacy in social entrepreneurship models, the partnership signifies a strategic shift towards embracing digital innovation to empower aspiring entrepreneurs.

"We believe that social businesses hold solutions to some of the most pressing problems of our time, but they cannot deliver or scale those solutions alone. This collaboration with TikTok is designed to help overcome specific social business challenges,” she stated.

Dennis Itumbi, the National Chair of the Committee of National Holidays, who was also present, took the opportunity to announce that the government would not be banning the social platform as had been suggested in a petition submitted to Parliament early this year.