(USAID) US Agency for International Development’s Kenya Investment Mechanism (KIM) and Vital Capital have partnered to provide funding to Kenyan agri-businesses that have been affected by the global COVID-19 pandemic.
KIM is a five-year program funded by USAID to unlock financing to businesses that have been hit by the global pandemic.
Vital Capital and KIM are looking to execute at least five completed transactions that would provide at least $5 million in financing, to alleviate the strain of the virus on Kenyan businesses, and in the long run, sustain 500 jobs.
A recent survey by the World Bank shows that about 27% of households in Kenya are suffering from food shortages.
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In May this year, a survey conducted by the Kenya Private Sector Alliance (KEPSA) revealed that small and medium-sized firms had been the worst hit by COVID-19. Agriculture, Transport, Manufacturing and Tourism, listed as the largest contributors to Kenya’s GDP, recorded the highest financial losses in real terms.
Vital Capital is an impact investment private equity fund focused on companies in sub-Saharan Africa.
The collaboration follows Vital’s launch of the Vital Impact Relief Facility in April. This $10 million emergency loan facility offers critical funding to African businesses to help them overcome the negative economic consequences of the pandemic.
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