British International Investment (BII), the UK’s development finance institution and impact investor, has officially unveiled its strategy for the period 2026-31, reinforcing the UK’s dedication to fostering sustainable economic growth, job creation, and climate resilience through private sector investments across Africa. The launch event held in Nairobi represents a crucial milestone in the economic partnership between the UK and Kenya, building on BII’s robust performance in East Africa, where it allocated approximately KSh 154.8 billion during the previous five-year strategy.
Investment Goals and Strategic Focus
Under its newly established strategy, BII intends to invest around KSh 864.3 billion of its own capital while mobilising up to KSh 683.7 billion in private capital throughout Africa. In Kenya, this will translate to increased investments in both businesses and infrastructure, with an emphasis on attracting additional institutional capital and creating favourable conditions for enhanced investment flows into the economy.
To achieve these goals, BII plans to collaborate closely with both public and private sector partners to fortify financial markets, develop investment frameworks, and tackle obstacles that hinder capital from reaching productive enterprises and essential infrastructure. This strategic alignment will ensure a more streamlined approach towards achieving sustainable growth.
Climate Finance and Economic Opportunities
As part of its commitment to addressing climate change, BII will raise the proportion of its climate finance investments to at least 40%. This initiative aims to support nations in transitioning to renewable energy sources and enhancing electrical networks, thereby providing clean energy to 10 million households. The overarching objective of the new strategy is to create jobs and economic opportunities for 10 million individuals across Africa, with a specific target of directing at least 30% of its core investments towards improving economic prospects for women.
During the launch, Matt Baugh, the British High Commissioner to Kenya, emphasised the significance of investment-led growth in the UK-Kenya partnership. He stated that both nations are committed to long-term investments that support businesses and entrepreneurs, ultimately driving job creation and economic expansion. Baugh articulated the essence of the partnership as a means of transforming investments into opportunities for communities and fostering a shared prosperous future.
Collaborative Development and Market Enhancement
Kirsty McNeill, the UK Minister for International Development and Africa, remarked on Kenya’s dynamic economy and its vast potential for job creation and growth. She expressed her pride in BII’s new strategy, which aims to cultivate a novel type of development partnership with Kenya and other African countries. This partnership focuses on unlocking private investments, enhancing financial systems, and collaborating with local entities to achieve mutual objectives.
Leslie Maasdorp, CEO of BII, articulated that the new strategy extends beyond merely investing BII’s own capital. The intention is to leverage capital, experience, and partnerships to attract investments from other sources and develop markets capable of drawing in larger capital inflows. He called upon local capital providers in Kenya to join forces with BII in discovering practical methods to redirect domestic capital into productive ventures and infrastructure projects.
Impact on Employment and Revenue Generation
BII-supported enterprises in Kenya currently sustain over 57,000 direct jobs across more than 120 businesses and significantly contribute to government revenues, having paid upwards of KSh 62 billion in taxes. The UK remains steadfast in its commitment to collaborating with Kenya to unlock investment opportunities, bolster business growth, and generate high-quality jobs.
Through BII and the broader economic partnership between the UK and Kenya, both countries are dedicated to ensuring that investments yield tangible benefits for Kenyan businesses and communities, thereby advancing long-term prosperity and sustainable development.
Transformative Investments and Climate Goals
Throughout its history, BII has played a pivotal role in nurturing some of Kenya’s most transformative enterprises and sectors. Notable examples include East African Industries, now under Unilever’s ownership, which received BII support for two decades and now manufactures a variety of well-known local brands, such as Blue Band margarine and Omo washing powder. Another significant investment was in the Kenya Tea Development Authority, which BII assisted during its formative years, leading it to become the world’s third-largest tea exporter and Kenya’s second-largest source of foreign exchange.
BII is also actively contributing to Kenya’s climate objectives through investments in renewable energy and climate-smart agriculture. Key investments include SunCulture, which provides solar-powered irrigation solutions to over 16,000 smallholder farmers, enabling them to enhance yields while significantly reducing water consumption, as well as renewable energy initiatives in Malindi and Menengai that are expanding access to clean power and bolstering Kenya’s renewable energy capabilities.