Why blended finance is gaining traction in Kenya's search for sustainable funding

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As Kenya looks for new ways to finance development without deepening its debt burden, blended finance is increasingly being discussed as part of the solution. The approach, which combines public or concessional funding with private capital, is being positioned as a way to attract long-term investment into priority sectors while managing risk for investors.

The model featured prominently in recent UK-Kenya business discussions, where Standard Chartered highlighted blended finance as a practical tool to support investment in areas such as energy, agriculture and infrastructure. Rather than framing it as a quick fix, the bank has argued that blended finance should be understood as one option within a broader financing toolkit for emerging markets.