June 24, 2024
US Gov't Set To Give $51M Loan To Kenyan Fintech Company For Digital Transformation

US Gov’t Set To Give $51M Loan To Kenyan Fintech Company For Digital Transformation

The US government has announced a $51 million (roughly Ksh7 billion) loan to a Kenyan mobile lending company as part of the transactions announced on Thursday, May 23. 

This loan is part of an agreement between the United States and Kenya, and it represents a key milestone in their relationship.

It falls within the Digital Transformation with Africa (DTA) initiative, which is a collaboration between the United States and other governments and commercial sectors. 

The loan aims to finance up to $210 million (about Ksh29 billion) in smartphone receivables and cash loans, making devices more affordable for low-income customers.

This endeavor is part of the greater partnership between the two countries. Kenya becomes the first African nation to benefit from the CHIPS and Science Act.

President Joe Biden’s administration, in collaboration with Congress, is investing $1 million (about Ksh134 million) in foreign assistance to strengthen Kenya’s semiconductor supply chains and ICT ecosystems.

The Chips and Science Act, worth $280 billion (Ksh37 trillion), seeks to boost the indigenous chip industry through subsidies and incentives.

The partnership offers job creation and revenue in Kenya’s semiconductor industry, which is believed to be worth billions of dollars worldwide. 

Micron and GlobalFoundries, in conjunction with the National Science Foundation (NSF), will offer financing to foster a diverse semiconductor workforce.

Micron’s MSI Semiconductor Network will engage with Kenyan colleges to train the next generation of semiconductor specialists.

Furthermore, the US Trade and Development Agency (USTDA) has invested $1.3 million (about Ksh172 million) to help Semiconductor Technologies Limited develop its semiconductor chip manufacturing capacity. 

This investment represents a big step forward in Kenya’s semiconductor industry capabilities, cementing the two countries’ collaboration.

In collaboration with Google, the United States and Kenya have announced the launch of a cybersecurity operations platform to strengthen Kenya’s digital infrastructure.

Microsoft has also vowed to provide free online certificates to Kenyans, so strengthening the country’s security against cyber threats and promoting AI research.

The USTDA’s funding projects aim to improve Kenya’s digital infrastructure, including a $1.13 million feasibility study to boost broadband connectivity across East and Central Africa.

Another $1.26 million award will be used to explore the commercial potential for Poa Internet, which would provide an affordable internet connection to low-income urban communities across Africa.

President Biden emphasized the importance of these projects during a high-profile meeting at the White House, underscoring Kenya’s critical role in building global supply chains and future sectors.

Under the International Technology Security and Innovation Fund, Commerce Secretary Gina Raimondo emphasized the importance of the semiconductor alliance in securing global supply chains.

Ruto’s visit, which will conclude with a state supper, underlines the Biden administration’s strategic effort to fight foreign influence in Africa.

Ruto emphasized Kenya’s expanding technology sector, establishing the country as a vital player in the digital world.

US Gov’t Set To Give $51M Loan To Kenyan Fintech Company For Digital Transformation

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