UNCDF in Kenya
East and Southern Africa and the Arab States Region
Loans
Guarantees
Investment grants
Our work
UNCDF’s work in Kenya focuses on unlocking public and private capital to drive inclusive economic growth, financial inclusion, and climate resilience, particularly for underserved communities. Through guarantees, concessional loans, and grants, UNCDF supports the development of resilient local economies aligned with Kenya’s Vision 2030.
In the agriculture sector, UNCDF is spearheading initiatives like the solar-powered cold chain project to reduce post-harvest losses and strengthen food systems. In the digital economy, the DigiKen programme is catalysing access to credit through local financial institutions for digital micro, small and medium enterprises, especially, those led by women and youth in arid and semi-arid lands using portfolio guarantees and performance-based grants.
Working in close collaboration with the Government of Kenya including ministries such as the Ministry of Information, Communications and Telecommunication and the Digital Economy, and the Ministry of Agriculture, UNCDF ensures national ownership while enhancing the capacity of local institutions and private actors. By embedding financial innovation within development programming, UNCDF plays a pivotal role in scaling impact and driving structural transformation across sectors.
In addition to country-specific initiatives, UNCDF implements several regional and global programmes that extend its footprint and impact in Kenya. These interventions are designed to leverage cross-country learning, innovation, and blended finance to address systemic development challenges. Notable among them are the Miamba Yetu Programme, implemented under the Global Fund for Coral Reefs (GFCR) to catalyse blue economy investments; the WFP–UNCDF Innovation Bridge, which supports the scaling of inclusive digital and climate-smart solutions; and the Africa Adaptation Initiative’s Food Security Accelerator programme, aimed at building food security, nutrition, and resilience of food systems. Collectively, these programmes reinforce UNCDF’s commitment to advancing inclusive finance, climate resilience, and sustainable livelihoods in Kenya through a regional and global lens.
Powering prosperity: solar cold chain solutions for resilient agriculture in Kenya
Kenya loses up to 40 percent of perishable produce annually due to inadequate cold storage, unreliable rural energy access, and limited financing, resulting in over USD 500 million in economic losses. To address this, UNCDF and UNDP, with support from the Mitigation Action Facility, are implementing a €23.3 million solar-powered cold chain project over a five -year period, funded by the Mitigation Action Facility
The project will deploy approximately 600-1,000 solar cold storage units to enhance post-harvest management and market access for smallholder farmers. Using UNCDF’s blended finance model, combining guarantees, concessional loans, and investment grants, the initiative reduces investment risk, mobilizes private capital at 2.5x leverage, and ensures financial viability for service providers.
Environmentally, the project introduces 5,000 metric tons of green storage capacity and reduces greenhouse gas emissions by 8.7 million metric tons. It is expected to benefit over 60,000 farmers, create 1,200 jobs, and improve income stability, with a strong focus on women and youth. Implementation began in 2025, with a phased rollout planned through 2029.
Solar-powered cold storage is helping Kenyan farmers cut losses, boost incomes, and build resilience. Photo: UNDP Kenya.
Unlocking digital potential: inclusive financing for MSMEs in Kenya
Kenya’s digital MSMEs, particularly those led by youth and women in underserved regions, face significant barriers to accessing affordable finance, limiting their growth and contribution to the digital economy. To address this gap, UNESCO, UNCDF, UN Women and UNEP launched the DigiKen programme, with implementation spanning 2024–2027.
At the core of the program is a guarantee facility designed to de-risk lending by financial institutions while strengthening their outreach and underwriting capacity to better serve digital MSMEs and platforms. In this context, UNCDF has advanced its catalytic financing approach through a USD 900,000 loan portfolio guarantee agreement with the Co-operative Bank of Kenya, expanding financing access for digital platform-based MSMEs and reinforcing the programme’s market-building objective.
Through this blended approach, DigiKen aims to support at least 150 MSMEs, including 50 percent youth and women-led businesses, and prepare up to three high-potential enterprises for international Series A funding.
Financially, the program unlocks lending to qualifying MSMEs, strengthening access to capital and business resilience. It also contributes to Kenya’s digital transformation, driving inclusive economic growth and job creation. The Ministry of Information, Communications, and Telecommunication and the Digital Economy, and the UN Resident Coordinator play key roles in ensuring government alignment and coordination.
UNCDF and Co-operative Bank of Kenya sign a $900,000 guarantee agreement to expand financing for digital platform MSMEs. Photo: UNCDF.
Miamba Yetu Program: catalysing blue economy investments for people and planet
Kenya’s coastal ecosystems face interconnected challenges of marine pollution, unsustainable fishing, and limited access to climate-resilient livelihoods. The Miamba Yetu programme (2022-2030), funded by the Global Fund for Coral Reefs (GFCR) and implemented by UNEP, WCS & UNCDF, deploys blended-finance instruments to protect coral reefs while promoting sustainable coastal economies among other interventions.
Through this initiative, Sanivation Limited is receiving a concessional loan to expand its circular sanitation model along Kenya’s coast. The company develops and operates fecal-sludge treatment infrastructure that converts waste into biomass fuel, reducing marine pollution from untreated wastewater while providing sustainable energy alternatives and green jobs for local communities.
Sanivation fecal sludge treatment plant 60% done. Photo: Sanivation Limited.
At the same time, Kumbatia Seafood Limited is receiving an Investment feasibility grant to pilot a commercially viable and traceable seafood value-chain model. The pilot enables artisanal fishers to transition from destructive reef-based fishing to open-water fishing using sustainable gear and targeting low-risk species such as mahi for export.
Together, these investments demonstrate UNCDF’s commitment to blended-finance solutions that advance reef protection, blue-economy innovation, and resilient coastal livelihoods in Kenya.
Inside a Jodoor hydroponic greenhouse in Morocco where the project is also been implemented. Photo: UNCDF.
AAI Food Security Accelerator
Implemented from August 2023 to March 2028, the Africa Food Security Accelerator is a USD 44.6 million multi-country financial mechanism aimed at strengthening food security, nutrition, and the resilience of food systems across Africa. The Accelerator supports practical, locally led solutions that enhance agricultural productivity, improve livelihoods, and promote economic stability.
In Kenya, the Accelerator is investing directly in micro, small and medium-sized businesses (MSMEs) operating across food value chains, including production, processing, storage, and distribution. These businesses are advancing innovative and sustainable solutions that improve efficiency and strengthen food systems. The programme targets a broad range of MSMEs, including women and youth-led enterprises with strong potential to deliver impact.
UNCDF plays a catalytic role in helping reduce investment risks to attract additional funding. The programme uses loans and repayable grants, alongside technical advisory and partnership support, to help businesses grow and access finance. By supporting MSMEs and the financial institutions that invest in them, the Africa Food Security Accelerator contributes to stronger agricultural systems, more resilient local economies, and improved food security for communities across Kenya.
Latest news and stories
Our partners
Throughout the implementation of these initiatives, UNCDF works in close collaboration with a diverse range of partners to ensure impactful delivery and alignment with national priorities. Key partners include the Mitigation Action Facility (MAF), the Ministry of Agriculture and Livestock Development, the Ministry of Energy and Petroleum, the Ministry of Information, Communications, and Telecommunication and the Digital Economy, and various county governments in Kenya. At the multilateral level, UNCDF is supported by UNDP, UN Women, UNESCO, UNEP, and the UN Resident Coordinator’s Office in Kenya. The initiatives have also engaged private sector actors such as partner financial institutions, cold chain service providers, and digital platforms, along with MSME networks underscoring a whole-of-ecosystem approach to inclusive and sustainable development.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
| Title | Type | Date |
|---|
Contact us
For inquiries about UNCDF’s work in Kenya, including partnerships, investment opportunities, or ongoing initiatives, please contact: esaa.region@uncdf.org.
