The US government has unveiled around Ksh7 billion loan to a Kenyan mobile lending firm, as disclosed in the agreements revealed on Thursday, May 23.
This loan forms part of the broader US-Kenya agreements, signifying an important development in their bilateral ties. It falls under the Digital Transformation with Africa (DTA) initiative, a joint venture involving the US, allied governments, and private sector entities.
The loan is intended to support the financing of up to $210 million (approximately Ksh29 billion) for smartphone receivables and cash loans, aiming to make devices more affordable for low-income borrowers. This initiative is part of the wider cooperation between the US and Kenya, with Kenya being the first African nation to benefit from the CHIPS and Science Act.
The administration of President Joe Biden, in collaboration with Congress, is dedicating $1 million (about Ksh134 million) in foreign assistance to enhance Kenya’s semiconductor supply chains and ICT ecosystems. The CHIPS and Science Act, worth $280 billion (Ksh37 trillion), aims to boost domestic semiconductor manufacturing through various subsidies and incentives.
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The partnership is expected to create job opportunities and generate revenue in Kenya’s semiconductor industry, which is valued at billions globally.
Micron and GlobalFoundries, in cooperation with the National Science Foundation (NSF), will offer funding opportunities to support a diverse semiconductor workforce. Micron’s MSI Semiconductor Network will work with Kenyan universities to develop the next generation of semiconductor professionals.
Moreover, the US Trade and Development Agency (USTDA) has allocated $1.3 million (approximately Ksh172 million) to assist Semiconductor Technologies Limited in expanding its semiconductor chip fabrication capabilities.
This investment marks a significant advancement in Kenya’s semiconductor industry, further solidifying the partnership between the two countries.
In collaboration with Google, the United States and Kenya have announced the launch of a cybersecurity operations platform to enhance Kenya’s digital infrastructure. Additionally, Microsoft has pledged to provide free online certifications to Kenyans, bolstering the nation’s defense against cyber threats and supporting AI research
USTDA’s funding initiatives are designed to improve Kenya’s digital infrastructure, including a $1.13 million feasibility study to expand broadband access throughout East and Central Africa. Additionally, a $1.26 million grant will explore market opportunities for Poa Internet, aiming to provide affordable internet access to low-income urban communities across Africa.
President Biden underscored the importance of these initiatives during a high-profile meeting at the White House, highlighting Kenya’s pivotal role in bolstering global supply chains and future industries. Commerce Secretary Gina Raimondo elaborated on the significance of the semiconductor partnership in securing global supply chains through the International Technology Security and Innovation Fund.
Ruto’s visit, set to culminate in a state dinner, reflects the Biden administration’s strategic efforts to counter foreign influence in Africa. Ruto emphasized Kenya’s burgeoning tech sector, positioning the country as a key player in the digital landscape.
