Kenya to Create 30,000 Digital Jobs in Ksh17.7 Billion UK Deal

Traders conducting business in a town in Kenya
Traders conducting business in a town in Kenya
Photo

Small businesses in Kenya are set for a major boost after the government announced a new Ksh17.7 billion investment from the United Kingdom.

The funding, which will target the country's tech and innovation sector, was announced after key talks between President William Ruto and UK Prime Minister Keir Starmer on Tuesday, July 1.

According to President Ruto, the talks with the UK are part of the broader partnership between Kenya and the European nation covering 2025 to 2030. During this period, the UK is anticipated to pump around Ksh266.1 billion into Kenya's economy.

"We have renewed the Kenya–UK Strategic Partnership, effectively setting the right tempo for more trade, investment, and green growth," Ruto announced on Tuesday.

Ruto and UK Prime Minister
President William Ruto and UK Prime Minister Keir Starmer after key talks on Tuesday, July 1, 2025.
PCS

"With a promise to double our bilateral trade over the next five years, we are confident the cooperation will deliver a tangible economic impact to our people."

The innovation-focused funds are set to directly benefit 590 start-ups as well as 5,000 digitally enabled micro, small, and medium-sized enterprises (MSMEs).

In addition, the government anticipates the funding to unlock 30,000 new digital jobs, which would effectively offer fresh employment opportunities, particularly at a time when unemployment among the youth remains a key challenge.

Besides job creation, the deal is also set to equip 2.5 million Kenyans with digital skills training, which will effectively enable them to access opportunities in the expanding Kenyan gig economy.

Kenya and the UK have enjoyed a healthy diplomatic relationship that dates back to 1963, when the country gained independence. Since then, diplomatic relations have gone on uninterrupted.

The new partnership marks the second major deal the government has secured in a year, targeting MSMEs, as in May 2024, the World Bank partnered with Kenya in a Ksh321 million project to mentor MSMEs. 

Kenya's infrastructure is also set for a boost thanks to the fresh talks with the UK. The Nairobi Railway City project, according to Ruto, will be the flagship initiative under the renewed deal. 

In addition, the government has also agreed to buy military equipment worth Ksh12 billion from the United Kingdom. 

Ruto's European tour comes at a time when Kenya is struggling with fiscal pressures. including public debt and constrained budgetary space. By collaborating with the UK, Ruto is deliberately prioritising private investments to fund its development projects.

Ruto UK Prime Minister
President William Ruto and UK Prime Minister Keir Starmer signing a strategic partnership on Tuesday, July 1, 2025.
PCS