[kictanet] Government extends financing for ICT incubation

[Phyllis Nyambura]

Listers,

The incubation model got fresh momentum today as the government, through
the Kenya ICT Board, announced that it is putting money to support ICT
SME's. The incubation facility will be hosted at Nailab and more than 30
start-ups are expected to benefit for a period of 3 years.

For more information see below:

*Government extends $1.6M support for ICT start-up businesses*

* **Pilot incubation program to tap into the robust ICT Enterprise by
developing soft business skills and operational support*

* **Nairobi, January 24th, 2013…*The Kenya ICT Board, has today launched a
pilot of the first government supported ICT based incubation program worth
$ 1.6 Million with funding from the International Development Association
(IDA).

The Information and Communication Technology business incubator pilot will
be implemented by NaiLab and will work with at least 30 startups hosted at
the incubator and another 100 virtually over a three-year-period in an
effort to sustain the concept and create high impact enterprises aimed at
growing Kenya’s economy and creating employment. Nailab, a partnership
funded by *1% Club* and managed by NaiLab Ltd, won the contract to host the
incubator, in a competitive process that saw more than 16 companies bidding.

The program’s main goal will be to build a program, support infrastructure
and outreach with successes being replicated in other parts of the country.

“The growth of Kenya’s economy is pegged on how many profitable businesses
we are able to build and sustain. This project displays the government
commitment towards supporting SME’s and growing Kenya as an ICT
destination,” says the PS, Ministry of Information and Communications, Dr
Bitange Ndemo.

The project is timely as Konza Technology City prepares to transform the
ICT investment landscape in Kenya in the next three years. Innovation, a
strong talent pool and entrepreneurship will be the cornerstone of the
smart city success.

 The incubation addresses many of the gaps that have been identified in SME
high failure rate. These gaps include increasing the capabilities of the
entrepreneur in terms of soft skills, technical skills and business skills,
business counseling, access to affordable services and facilities, access
to SME finance, better linkages with both the academic community and
industry, and quicker commercialization of innovations.

“This initiative is a public-private-partnership that builds on existing
efforts in building an ICT ecosystem to support entrepreneurs towards
turning ideas into scalable businesses. Such collaborations have proved to
give great results,” said Kenya ICT Board CEO, Paul Kukubo.

The incubation facility will have a mix of entrepreneurs in the concept,
early and mature stages. The companies to be considered will be less than
five-years old, offer ICT-oriented products and their offerings should have
an impact on Kenya’s social-economic environment.

“Our objective has been and will always be to stimulate innovations and
encourage entrepreneurship in Kenya, with the signing of this contract with
the Kenya ICT Board; we will be able to reach out to other parts of the
country, all grass root problems cannot be solved using ICT, but innovation
includes creating new more effective processes and we hope to play our role
in that. “We want to make sure that those we will incubate double their
turnover within three years,” said Sam Gichuru, the NaiLab, CEO

The pilot project will also see Kenya ICT Board and Nailab establish
collaborative relationship with relevant organizations and institutions to
drive the ICT agenda in the country.



 “It is important for entrepreneurs to have other value addition other than
just capital such as industry knowledge and strong mentorship for their
start-up. Establishing a facility to give support services will enable the
entrepreneurs get clarity in various areas like target customers,
approaches to reach them, infrastructure and how to run their business
successfully,” says Mr. Andrew Lewela, Project Manager, BPO/ITes at the
Kenya ICT Board.

A business incubator avails young enterprises with an environment conducive
to accelerate business ideas by availing work spaces, business coaching and
mentorship. The Kenyan pilot model is looking at innovative ideas with
business potential in ICT.

“Our target has never been to have more “techies” /programmers sitting in
the space but to have them interact with the farmers, health workers,
teacher and matatu drivers and other relevant subsectors of the economy, we
need to understand their problems so that we can design market driven
solutions,” added Sam Gichuru.

*
*

*About NaiLab*

NaiLab is a startup accelerator is a partnership between 1% Club and Nailab
ltd ,that offers a  three to 12 months entrepreneurship program with focus
on growing innovative technology driven ideas, this is done by providing
business advice, technical training and support, professional mentoring and
coaching, access to market, strategic partnership and most important
investors.

The NaiLab focuses on early stage business ideas that are likely to have a
large social and economic impact, are highly scalable, require minimum
investments to prototype and have a strong value proposition.

*About Kenya ICT Board*

Established as a state corporation in 2007, the Kenya ICT Board’s has been
a champion and an active enabler for the adoption and exploitation of ICT,
through promotion of partnerships, investments and infrastructure growth
for socio economic enrichment. This is in line with making Kenya African
premier ICT hub by 2030.

* *


*Regards,*
Phyllis Nyambura
Communication Writer
Kenya ICT Board

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P.O. Box 27150 - 00100 Nairobi, Kenya
t: + 254-020-2211960/62 | m: + 254 (0) 789396433 | e: pnyambura at ict.go.ke

Visit: www.ict.go.ke
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*
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growth for socio economic enrichment
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