KEPSA pivots from advocacy to enterprise resilience as U.S. aid drops. Discover how Kenya is rebuilding its economy from within.
KEPSA Shifts Strategy as US Slashes Foreign Aid
NAIROBI, Kenya — In the aftermath of a $54 billion cut in U.S. foreign aid following Donald Trump’s re-election, the Kenya Private Sector Alliance (KEPSA) is pioneering a bold transformation—from traditional advocacy to powering private-sector-led economic resilience.
“We found ourselves in a landscape where foreign aid was diminishing,” said KEPSA CEO Carole Kariuki.
“So we turned inward and asked: what can the private sector do for itself?”
From Advocacy to Economic Action
Founded in 2003, KEPSA has long championed pro-business reforms in Kenya. But with multinational corporations exiting and capital inflows shrinking, KEPSA is evolving into an economic engine through new initiatives like KEPSA Consult.
KEPSA Consult offers paid capacity-building services for Kenyan SMEs, with a focus to:
- Strengthen resilience
- Spur enterprise growth
- Reduce reliance on foreign aid
Explore More: How SMEs Power Kenya’s Economy
Tougher Times for Foreign Investment
Despite Kenya’s pro-investment policy stance, 2024 witnessed major corporate exits:
- Procter & Gamble closed down, cutting 850 jobs
- Base Titanium signaled departure, risking 1,200 jobs
- GlaxoSmithKline, De La Rue, and Jumia Food also pulled out
“If major multinationals continue to pull out, Kenya risks losing its edge,” Kariuki warned.
Finance Bill 2025: Private Sector’s Voice in Parliament
KEPSA has ramped up engagement with lawmakers on the upcoming Finance Bill 2025—playing a key role in shaping:
- VAT and turnover tax revisions
- Inflation-indexed levies
- SME-friendly provisions
“The private sector must be at the table,” said KEPSA Chair Dr. Jas Bedi.
Related: How BETA Aligns with Vision 2030
Unlocking Growth Through Public-Private Partnerships
KEPSA is building strategic public-private partnerships (PPPs) to unlock investment in:
Flagship programs like the Kenya Youth Empowerment Program (KYEP)—co-funded by the World Bank—have already trained over 20,000 youth for work in modern industries.
Explore: Kenya’s Youth Unemployment Challenge
Digital Innovation as a Growth Lever
With Kenya’s reputation as Africa’s Silicon Savannah, KEPSA is championing digital transformation:
- Mobile money adoption
- Cross-border e-commerce under AfCFTA
- Startup expansion into Nigeria & South Africa
In the creative economy, KEPSA collaborates with the Kenya Film Commission and Kenya Film Producers Association to:
- Strengthen content regulation
- Attract global streaming platforms
“We must build on our innovation edge,” Kariuki affirmed.
ESG and Impact Investing: Driving New Corporate Culture
Through the promotion of Environmental, Social, and Governance (ESG) frameworks, KEPSA seeks to:
- Mitigate risk
- Attract ethical capital
- Promote long-term sustainability
“Sustainability is not optional—it’s essential,” Kariuki emphasized.
National Business Agenda III: 2022–2030 Vision
KEPSA’s National Business Agenda III (2022–2030) aims to solve persistent private-sector barriers, including:
- High cost of energy
- Skills mismatch
- Limited access to credit
These priorities are fully aligned with Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA).
Explore: What BETA Means for Private Sector Growth
🔚 Conclusion: Building Prosperity from Within
With foreign aid receding and global investors pulling back, Kenya’s path forward lies in economic self-reliance—a goal KEPSA is working to realize through strategic partnerships, local innovation, and private-sector empowerment.
“Prosperity will not be imported,” Kariuki concludes.
“It must be built—one resilient enterprise at a time.”