Over 30 Kenyan startups are facing an uncertain future following a recent directive from the U.S. government that could bring an end to funding from the United States Agency for International Development (USAID). The shutdown of USAID’s Development Innovation Ventures (DIV) program has left these promising companies without critical financial support.
For the past decade, USAID has invested more than $100 million into Kenyan businesses, fueling innovations in sectors like agriculture, healthcare, and renewable energy. These grants, ranging from $500,000 to $6 million, have been lifelines for many startups aiming to scale their operations and drive meaningful change.
Take Pula Advisors, for example. In 2023, the insure-tech company received $1.5 million to expand its services to smallholder farmers in Kenya and Zambia. Similarly, Maisha Meds secured $5.25 million to improve medical supply distribution, while BasiGo, a company introducing electric buses, was awarded $1.5 million to expand into Rwanda. SolarGen Technologies also benefitted with a $2.5 million grant to develop solar-powered water purification systems.
One of the most recent beneficiaries, Sanergy, was awarded $100,000 to enhance sanitation solutions in urban areas. However, with the U.S. State Department’s January 24 directive to reduce all aid, these grants may now be at risk, threatening the future of these innovative startups. Without these crucial funds, many of these businesses are scrambling to find new sources of financial support to continue their growth and impact.
