Kenya's Novel Plan: Redirecting CSR to Fund Innovation
Kenya is set to introduce a novel approach to fostering innovation. The Kenya National Innovation Agency (KeNIA) is drafting a proposal to establish a national policy that would redirect a portion of companies' Corporate Social Responsibility (CSR) allocations into an innovation fund.
Inspired by India's Companies Act of 2013, Kenya's proposal aims to mandate large firms to allocate a percentage of their net profits over three years to CSR initiatives, with a focus on early-stage ventures in national parks. KeNIA hopes to attract at least KES 4.5 billion ($34.8 million) from private sector contributions through this CSR framework.
Kenyan companies like Safaricom, East African Breweries Limited (EABL), and Kenya Airways have already invested their CSR budgets in innovation projects in national parks and could increase support through the proposed regulations. KeNIA is exploring how to engage the private sector further to support national innovation programmes in national parks. If implemented, Kenya would become one of the first African countries to direct CSR resources towards startup financing in national parks.
President William Ruto has already allocated KES 1.5 billion ($11.6 million) for innovation, with KES 1 billion earmarked for startup financing in national parks. This new CSR framework aims to provide a more predictable funding environment for Kenyan startups in national parks, which currently rely heavily on grants and external sources.
