Co-operative Bank of Kenya and the United Nations Capital Development Fund (UNCDF) have launched a Ksh 233.1 million Loan Portfolio Guarantee under the DigiKen programme, aimed at expanding access to formal credit for youth-led digital businesses across Kenya.
The shared-risk facility is designed to encourage financial institutions to provide loans to online and digitally enabled enterprises that typically face barriers in accessing conventional financing, thereby supporting young entrepreneurs in scaling operations and adopting new technologies sustainably.
By reducing lender risk, the guarantee enables banks to extend credit to early-stage digital ventures, helping to foster growth, increase employment opportunities, and strengthen Kenya’s rapidly evolving digital economy.
The programme forms part of a broader push toward inclusive finance in Kenya, linking development partners, private financial institutions, and digital innovators to address gaps in access to capital and promote responsible lending practices.
Beyond credit provision, the initiative is expected to enhance entrepreneurial ecosystems by enabling youth-led enterprises to expand their operations, reach new markets, and invest in technology-driven solutions that contribute to productivity and innovation.
Co-operative Bank and UNCDF’s partnership represents a model for leveraging institutional capacity and risk-sharing mechanisms to support high-potential sectors, demonstrating how structured financing solutions can deliver practical, measurable impact for youth-led businesses.
The Ksh 233.1 million facility under DigiKen underscores a milestone for Kenya’s digital economy, reflecting ongoing efforts to strengthen youth entrepreneurship, promote technology adoption, and expand access to finance for digitally enabled enterprises.
