Component 1: Competitive business challenge
The KKCF Competitive Business Challenge is no longer taking new applications. Please find our list of winners here
KKCF’s Competitive Business Challenge offers incentives to small and medium-sized businesses looking to enter Kakuma. The component, which is being implemented in partnership with the AECF offers three windows of competitive funding opportunities:
- The Private Sector Window (PSW) targets private sector companies seeking to set up or expand operations in the Kakuma and Kalobeyei areas. Companies compete for performance-based grants of $100,000 to $750,000 , which require them to contribute funding. Technical assistance is also provided.
- The Social Enterprise Window (SEW) targets social enterprises seeking to set up or expand operations in the Kakuma and Kalobeyei areas. Companies compete for performance-based grants of $100,000 to $750,000 ,, which require them to contribute funding. Technical assistance is also provided.
- The Local Enterprise Development (LED) Window provides finance and technical assistance to local (refugee and Turkana-owned) enterprises already present in the Kakuma and Kalobeyei areas.
Two rounds of the competition have been initiated since its launch. The first competition was launched in November 2020 for all windows. The first round of winners were announced in May 2022.
So far, 40 winning companies have been selected, creating hundreds of jobs and providing thousands of services to refugees and the host community. You can read more about the KKCF portfolio here https://kkcfke.org/portfolio-snapshot/
More winners will be announced in late 2023
Component 2: Investment Climate and Policy Advisory
KKCF has recognized that a pivotal component of fostering economic growth in the Kakuma-Kalobeyei area is establishing a regulatory environment conducive to developing businesses within the host community and among refugees in Turkana West sub-county.
Since 2020, IFC has closely collaborated with the Turkana County Government and UNHCR to launch the Biashara Huduma Centre, a comprehensive “one-stop shop” designed to provide a wide range of essential county and national services. This innovative initiative aims to tackle various challenges encountered by local businesses, host communities, refugees, and regulatory bodies, thus facilitating the smooth reception and delivery of crucial services.
Additionally, efforts have been made to establish an Investment Promotion Bill and portal to create a more systematic regulatory foundation to attract investments within the county. The two efforts are dedicated to enhancing investment capacity and creating fresh opportunities within Turkana County, thereby significantly contributing to the region’s economic growth and development.
KKCF has also forged synergies with another IFC project, the Kenya Investment Climate Program Phase 3.
Component 3: Hands-on Support to Larger Firms
This component aims to facilitate the entry of larger firms into Kakuma by highlighting and quantifying the business opportunities available in the area. Although KKCF feasibility studies like “Kakuma as a Marketplace,” “Kakuma Energy Study,” and “Kakuma Water Study” have already shed light on the potential business prospects in Kakuma, the context of this region remains unique and unfamiliar to many larger firms.
Recognizing this, IFC is providing critical assistance and support to large firms through advisory services, including conducting scoping missions, conducting comprehensive market studies, and aiding in capacity building to help them navigate and thrive in this distinct environment.
One notable achievement of the project is the signing of an agreement with Goodlife Pharmacy, marking a significant step towards opening and operating the first modern pharmacy in Kakuma town. This development represents a positive stride in improving access to essential healthcare services in the area and enhancing the overall business landscape.
Further, IFC signed a mandate letter with Equity Bank in March 2023 to collaborate on a Risk Sharing Facility (“RSF”) aimed at expanding Equity Bank’s loan portfolio in 14 fragile counties in Kenya.