Chinese social media platform, TikTok, has decided to support local small and medium enterprises (SMEs) in Kenya with a $1.49 million fund, in an investment which is one of the largest by a social media company in Kenya’s SME sector.
The fund seeks to provide loans, grants, training, and mentorship to entrepreneurs using TikTok to showcase their businesses. It is a response to the challenges faced by SMEs in Kenya, with 83% reporting revenue declines during the COVID-19 pandemic.
In partnership with Yunus Social Business, TikTok plans to support Kenya’s SMEs in various sectors that leverage the platform for promotion, including fashion, food, and education. The initiative has the potential to benefit over 500 SMEs, creating more than 10,000 jobs if the funds are effectively allocated.
This move follows TikTok’s announcement of establishing its regional headquarters in Kenya. Despite facing a potential ban threat in the country earlier in 2023 due to concerns over explicit content and privacy violations, TikTok has pledged stricter policies, saving it from being banned by the government.
Other social media platforms have also shown interest in supporting African creators and businesses. In 2020, YouTube launched a $100 million African creator fund to provide grants and training.
As digital platforms play an increasingly significant role in economic growth, the investment from TikTok is expected to contribute to the growth and innovation of Kenya’s SME and creative ecosystems. However, responsible growth and positive community impact will require ongoing dialogue and collaboration between digital platforms and local stakeholders.
