NIFCA’s proposed $250 million fund raises questions for African startups

Kenyan startups may have another source of investment to look to, with the Nairobi International Financial Centre (NIFCA) planning a $250 million fund for technology and artificial intelligence businesses. NIFCA chief executive Daniel Mainga announced the proposal at the Africa Blockchain Festival 2026 in Nairobi on 27 October. The fund is expected to cover Kenya and other African markets, with plans to establish it between 2026 and 2027.

The announcement puts a sizeable figure on the table, but there is still little information for founders who want to know whether they could receive funding. NIFCA has not publicly set out who will contribute the money, how much individual startups could receive or when investments are expected to begin. For businesses already looking for capital, those are the details that will determine whether the proposal becomes a practical option.

The funding question for Kenyan startups

Raising money is one thing. Finding enough to keep a business running while it grows is another. A startup may have a working product and customers but still need investment to hire staff, improve its technology or expand into another market. For some founders, the challenge is finding investors willing to back a business before it has reached the scale they want to see.

Kenya has an established technology sector, particularly in mobile payments and financial services. But a proposed fund will not automatically reach every business looking for capital. Its investment rules will determine which companies get a chance. NIFCA has yet to clarify whether it will prioritise early-stage startups, businesses with established revenue or companies preparing for expansion.

AI is part of the plan, but the terms are still unclear

The proposed fund is expected to support technology and artificial intelligence businesses. That leaves a broad range of possible investments, from software companies selling to businesses to startups developing AI products. The question is what NIFCA will look for before committing money. Will a founder need paying customers and a proven business model, or will companies still developing their products be considered?

The size of individual investments will matter too. A small startup raising its first round may need a different level of support from a company preparing to enter several African markets. Without published investment criteria, founders cannot yet tell whether the fund fits their needs or what they would have to demonstrate to qualify.

When will the money be available?

NIFCA's proposal is still at the planning stage. Details about the fund's backers, management, application process and first investment dates have not been made public. That leaves founders waiting for information they can act on. They need to know whether applications will be open to businesses across Africa, whether Kenyan companies will receive a specific allocation and how investment decisions will be made.

Until those questions are answered, the proposed $250 million should not be treated as funding that startups can currently apply for. The next announcement from NIFCA will need to explain how the fund will operate. For founders, that will be more useful than the headline figure alone.