Kenya’s DigiKen Programme Mobilises $4.26 Million for Digital Transformation

Kenya is advancing its digital transformation agenda through DigiKen,  a multi-stakeholder programme bringing together government, the United Nations, development partners and the private sector to expand digital skills, entrepreneurship and access to finance.

Kenya’s Principal Secretary for the State Department of ICT and Digital Economy, Eng. John Kipchumba Tanui, chaired the DigiKen Joint Steering Committee meeting, which reviewed progress and priorities for the programme.

DigiKen has approximately US$4.26 million in funding and co-financing and supports 15 digital innovation hubs focused on media and information literacy, digital skills, digital platform entrepreneurship and sustainable artificial intelligence technologies.

The programme targets more than 20,000 public-sector officials with digital transformation, governance and AI capacity-building initiatives. It also aims to support 150 MSMEs, startups and entrepreneurs, with half of the beneficiaries expected to be women- and youth-led businesses.

In addition, DigiKen targets about two million digital platform users and approximately 4,500 direct jobs as Kenya seeks to strengthen participation in its digital economy.

The programme is also addressing access to finance for digital MSMEs, particularly asset-light businesses and enterprises operating in arid and semi-arid areas. The United Nations Capital Development Fund (UNCDF) has established a US$900,000 portfolio guarantee with Co-operative Bank of Kenya, covering 50% of eligible financing and up to 70% for higher-risk and underserved areas.

Co-operative Bank has approved four financing products under DigiKen covering digital credit providers, fintech businesses, e-commerce and MSMEs digitising their operations, as well as digital hubs and ecosystem enablers.

The initiative aims to demonstrate that digital enterprises can become viable commercial lending segments beyond the duration of the guarantee.

Tanui also highlighted Kenya’s position as a growing digital platform market in Eastern Africa, with home-grown platforms recording a 71% growth rate. With about 1.2 million Kenyans already working in the gig economy, the programme is focused on building a more inclusive and sustainable digital ecosystem.

The DigiKen agenda ultimately seeks to make digital transformation more practical for citizens and businesses by improving access to government services, reducing costs, enabling online service tracking, simplifying compliance and expanding access to information, finance and markets.