This archive report was first published on 27 December 2019.
Kenya is on the cusp of becoming an oil-exporting nation, with the country expected to join the league by 2023. To capitalize on this opportunity, the International Finance Corporation (IFC) has launched a six-year project to help small firms in Kenya secure oil contracts.
According to IFC, the project, dubbed Kenya Local Economic Development Project (LED-Kenya), aims to strengthen local firms' capacity and the business environment in communities impacted by oil, gas, mining, and infrastructure investments in Kenya. The project will run until June 2023.
IFC has already invested an additional Sh13.4 billion in Kenyan companies in the year ended June, taking its stock of local capital commitment to Sh305 billion. The project is split into three phases, with the first phase focusing on enhancing opportunities for local businesses to participate in the supply chains of multinational firms.
The second component involves creating different market opportunities for local businesses and boosting their ability to compete in new markets such as agricultural and livestock value chains as well as renewable energy. IFC will also support women and youth entrepreneurship, capacity building, and facilitating access to finance with local financial institutions.
Additionally, the project aims to enhance corporate governance of local boards and advisory councils. This initiative is part of IFC's efforts to increase its business advisory projects in Kenya, in addition to its traditional role of providing debt and equity funding to local firms.
