The UK’s development finance agency, British International Investment (BII), has introduced its 2026–2031 strategic plan for Kenya, aiming to allocate roughly $6.7 billion from its own funds while encouraging an additional $5.3 billion in private sector funding across the African continent.
This initiative succeeds BII’s earlier pledge to invest $1.2 billion in East Africa over the past five-year period.
Key Investment Areas
Within Kenya, BII will prioritize funding for companies and infrastructure projects, while also working to draw in institutional investors, bolster financial systems, and reduce obstacles preventing private capital flows.
The strategy emphasizes leveraging external funding sources in tandem with BII’s direct investments, forging alliances with domestic financial entities and institutional backers.
Tapping Domestic Resources
During the strategy’s launch, BII CEO Leslie Maasdorp hosted a Kenya-based forum dedicated to unlocking institutional capital for infrastructure and productive enterprises.
Participants discussed potential financing methods, including local-currency loans, blended finance models, risk-sharing frameworks, and capital market tools.
As of June 2026, Kenya’s pension funds totaled KSh3.167 trillion, per the Retirement Benefits Authority. Yet only 0.02% of these assets were directed toward infrastructure debt, while 0.62% went into real estate investment trusts (REITs).
BII identifies an opportunity to redirect a larger portion of these domestic savings into sustainable, long-term development projects.
Maasdorp remarked, “Our new strategy goes beyond deploying BII’s own capital. We’ll use our resources, expertise, and partnerships to mobilize broader investment and create markets capable of scaling up funding.”
For affected communities, the approach could translate to heightened investment in local enterprises and infrastructure, supporting job creation and economic expansion.
BII plans to position Kenya as a regional financial hub, adapting its Kenyan-developed financing models for neighboring East African nations, Uganda, Ethiopia, and Tanzania, potentially benefiting the wider area.
Broader Economic Outlook
The African Development Bank forecasts East Africa’s economy will expand by about 6% in both 2026 and 2027, creating favorable conditions for infrastructure, financial services, and private sector growth.
UK International Development and Africa Minister Kirsty McNeill stated the strategy would strengthen collaboration with Kenya, centering on private investment and financial sector enhancement.
Seema Dhanani leads BII’s East Africa operations as Regional Director and Kenya office head.
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