There is a clear need for an institutional structure to lead, coordinate and expand the development of Kenya’s social investment sector. With this in mind, Allavida, funded by the Rockefeller Foundation, has embarked on the establishment of the Kenya Social Investment Exchange (KSIX), the first social investment exchange in East Africa, to be launched later this year. KSIX aims to promote the growth of social investment in three important ways.

First, it will provide a platform to broker deals between cash-strapped social purpose enterprises on the one hand and interested investors on the other. Investors will have access to organizations that have been rigorously analysed by KSIX staff according to social, environmental and financial criteria.

Second, it will advocate pro-social investment policies. Its brokering of deals that have social, environmental and financial value will help to demonstrate the value of the social investment sector in Kenya. Finally, it will collect and analyse information on the sector in Kenya, Africa and globally.

How will KSIX work?

KSIX will function through two tiers. The first is the Exchange Platform, which will list social purpose enterprises approved by the board of advisers and investor-ready. Through this platform, investors will identify projects they want to invest in, the type of financing they are willing to give, and the percentage of investment need they are willing to provide. Projects that pass the due diligence stage and demonstrate potential but are not approved by the board will be directed to the Project Incubator, where points of improvement will be suggested to them. Projects will be resubmitted to the advisory board for consideration once the recommended changes have been made. The Project Incubator will develop in stages, with more business and monitoring and evaluation advisory services, as well as mentorship programmes, built into it over time.

The second tier will list projects that yield no financial return, but only social and environmental returns. It is aimed mainly at individuals interested in social investment, allowing them to direct their money to trustworthy social purpose projects that qualify for tax exemption. The presence of both tiers will enable KSIX to function across the blended return spectrum.

For more information
Contact Anzetse Were, Acting CEO of Allavida, at awere@ksix.co.ke