The Kenya Investment Mechanism (KIM) is a five-year USAID program that is facilitating $520 million in investment for key sectors of Kenya’s economy, including agriculture, and for regional trade and investment opportunities under the Prosper Africa initiative. The program supports the mobilization of private investment and accelerates enterprise-driven development.
KIM addresses two principal market failures that have discouraged investors from financing micro, small, and medium enterprises (MSMEs) in the Kenyan economy: insufficient quality consulting services and limited availability of financial products tailored to these sectors. KIM uses smart incentives to mobilize finance for development in targeted sectors including agriculture (supported by Feed the Future), clean energy (supported by Power Africa), and women-owned businesses as well as in the health, water, and trade sectors.
KIM builds the capacity of financial institutions (FIs) and business advisory service providers (BASPs) through training and technical assistance to facilitate private finance and investment for the working capital needs of smallholder farmers and MSMEs. This increases the competitiveness and productivity of enterprises working along any link in the target value chains. Concurrently, KIM leads policy reform efforts focused on removing barriers inhibiting large-scale investment into these sectors, therefore unlocking further finance. The two objectives result in the program serving as an investment platform that mobilizes substantial capital from the private sector and builds partnerships between stakeholders in the financial ecosystem.
