Vital Capital Collaborates with USAID’s Kenya Investment Mechanism to Provide Financing to Kenyan Businesses Affected by COVID-1921-07-2020
Vital Capital has launched a new collaboration with USAID’s Kenya Investment Mechanism (KIM) to support agribusinesses in Kenya affected by the COVID-19 pandemic.
Managed by international impact advisory and management firm, Palladium, KIM aims to unlock $400 million in investments for key sectors of Kenya’s economy, with the aim to pull small and medium-sized enterprises (SMEs) into competitive and growth-oriented value chains to foster broad-based, sustained, and inclusive economic growth in Kenya. COVID-19 is a particular threat to the livelihoods and food security in a nation that is already grappling with the worst locust infestation in 70 years and trying to recover from extensive flooding. Around 27% of households are suffering from food shortages, according to a recent survey by the World Bank, while in May, the Central Bank of Kenya warned that some 75% of the country’s SMEs face collapse without funding from banks or equity partners.
Under the agreement, Vital's Impact Relief Facility and KIM will collaborate to identify potential opportunities in KIM’s pipeline that corresponds to Vital Capital’s investment mandate and to leverage KIM’s network of transaction advisors to more efficiently bring transactions to close under Vital Capital’s investment committee. Vital Capital and KIM are seeking to identify and execute at least five completed transactions, providing at least $5 million in financing, to alleviate the strain of COVID-19 on impactful Kenyan businesses, sustaining 500 jobs.
For the official announcement please follow this LINK.