Ruto promises Ksh.1.5 billion for Startup Fund, innovation agency

Speaking during the launch of Kenya's innovation week in Nairobi, the president explained that the funds would also de-risk venture capitalists who are investing in the Kenyan market. 

Venture capitalism is a process where investors fund a new or expanding business that has a substantial element of risk. According to the head of state, the Startup Fund would provide a low-level risk element for the investors. 

Additionally, the president promised Ksh.500 million to the Kenya Innovation Agency to foster innovation among the youth and subsequently create job opportunities. 

Ruto pointed out that the agency has since received a significant boost in funds during his tenure in office, rising from Ksh.18 million to Ksh.200 million. 

He further promised to boost the agency to the tune of Ksh.500 million as part of his policy to drive socio-economic development through innovation. 

To effect this, he instructed the agency to be moved to the Office of the President to align with the budgetary needs. 

"We have chair Alice Ng'ang'a, moving forward we must have a clear determinate budget I'm going to be proposing to Parliament Ksh.500 million for KIA and Ksh.1 billion for startup fund so that we can provide the resources to de-risk venture capital that is coming to Kenya," Ruto said. 

Further, the president explained his emphasis on innovation, citing that tough decisions need to be made to solve the unemployment crisis in the country. 

The latest data by the Kenya National Bureau of Statistics (KNBS) shows that the unemployment rate is currently at 12.7 per cent, with the youth forming the majority of the statistics at 67 per cent.  

"It takes concrete decision and policy framework to create jobs whether it is in the housing plan, digital jobs, export labour, Special Economic Zones (SEZs) and industrial parks and now in the innovation space. We will expand opportunity in this space," he stated. 

"Because of the importance of innovation and opportunities it can create, it's important that we harness the opportunity for this space as part of our plan of making sure we create adequate and quality jobs for our young people," he added.