This report provides a profile of institutional investors in Kenya and an assessment of their attitude and appetite for investment in early stage investment funds targeting small and medium sized enterprises (SMEs). The report was commissioned by GrowthFin, a programme of the Financial Sector Deepening (FSD) Trust that works with policy makers, donors, industry associations and financial institutions to identify and overcome impediments to the provision of financial services to SMEs. The key objective of the study is to provide a systematic documentation of the following:
1. The legal and regulatory framework pertaining to the use of long-term funding for risk investment;
2. A census of the availability of long-term funds in Kenya; and
3. A representative survey of the attitudes of holders of these funds to risk investment in particular with respect to SMEs.
Strategic Business Advisors (Africa) Ltd. (2008). SME Risk Capital Funds: Constraints to Kenyan institutional investors. Nairobi, Kenya: FSD Kenya.