The US government has announced a $51 million (approximately Ksh7 billion) loan to a Kenyan mobile lending company, as part of the deals announced on Thursday, May 23.
This loan is part of the agreements between the US and Kenya, marking a significant milestone in their relations. It comes under the Digital Transformation with Africa (DTA), a collaborative effort of the US and allied government and private sectors.
The loan aims to support the financing of up to $210 million (about Ksh29 billion) of smartphone receivables and cash loans, making devices more affordable for low-income borrowers. This initiative is part of the broader cooperation between the two countries, as Kenya becomes the first African nation to benefit from the CHIPS and Science Act.
President Joe Biden’s administration, working with Congress, is allocating $1 million (about Ksh134 million) in foreign assistance to bolster Kenya’s semiconductor supply chains and ICT ecosystems. The Chips and Science Act, valued at $280 billion (Ksh37 trillion), aims to strengthen domestic semiconductor manufacturing through subsidies and incentives.
The partnership promises job opportunities and revenue in Kenya's semiconductor industry, estimated to be worth billions globally.
Micron and GlobalFoundries, in collaboration with the National Science Foundation (NSF), will provide funding opportunities to support a diverse semiconductor workforce. Micron’s MSI Semiconductor Network will collaborate with Kenyan universities to cultivate the next generation of semiconductor professionals.
Moreover, the US Trade and Development Agency (USTDA) has committed $1.3 million (about Ksh172 million) to support Semiconductor Technologies Limited in expanding its fabrication of semiconductor chips.
This investment signifies a significant advancement in Kenya’s semiconductor industry capabilities, further strengthening the partnership between the two nations.
In a joint effort with Google, the United States and Kenya announced the launch of a cybersecurity operations platform to bolster Kenya’s digital infrastructure. Microsoft has also pledged to offer free online certifications to Kenyans, enhancing the nation's defense against cyber threats and supporting AI research.
USTDA's funding initiatives aim to enhance Kenya's digital infrastructure, including a $1.13 million feasibility study to expand broadband access across East and Central Africa. Another $1.26 million grant will explore market opportunities for Poa Internet to provide affordable internet access to low-income urban communities across Africa.
President Biden emphasised the importance of these initiatives during a high-profile meeting at the White House, highlighting Kenya’s crucial role in strengthening global supply chains and industries of the future. Commerce Secretary Gina Raimondo elaborated on the semiconductor partnership's significance in securing global supply chains under the International Technology Security and Innovation Fund.
Ruto’s visit, which will culminate in a state dinner, reflects the Biden administration’s strategic push to counter foreign influence in Africa. Ruto highlighted Kenya’s growing tech sector, positioning the country as a key player in the digital space.
