Nairobi, Jan. 20 -- UK-backed Financial Sector Deepening Africa (FSD Africa) is lining up a new debt fund to help mobilise between $64 million (Sh8.25 billion) and $77 million (Sh9.93 billion) for lending to small and medium enterprises in Kenya.

The firm says in a newly published Impact Report 2025 that it wants to narrow the financing gap for small businesses through a Kenya SME debt fund, which will be structured to mobilise capital from local institutional investors such as pension funds and insurers.

The Kenya-specific debt fund will build on FSD's Africa Private Equity and Debt Programme, which was set up targeting to develop investment funds focused on SMEs in Ghana, Kenya and Rwanda.

FSD says it is going to put an initial first...