Key Takeaway: Finnfund’s $4 million investment in Poa Internet represents a strategic move to tackle Kenya’s digital divide, bringing affordable high-speed internet to underserved communities while positioning the country as a model for inclusive digital transformation across Africa.
Finnfund, the Finnish development financier, has announced a $4 million debt investment in Poa Internet, Kenya’s fourth-largest internet service provider with 238,030 subscribers and a 13.8% market share as of Q2 2025. The investment will expand Poa’s network capacity and accelerate its mission to connect Africa’s unconnected communities.
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Addressing Kenya’s Connectivity Challenge
Poa Internet has positioned itself as a low-cost broadband provider serving areas where connectivity remains out of reach for many households. According to the company, the financing will help extend coverage to new communities and strengthen its existing infrastructure. Nokia, which serves as Poa’s preferred fibre technology partner, will support the rollout with cutting-edge infrastructure solutions.
“We are excited to support Poa Internet in expanding its provision of high-speed internet to lower income areas in Kenya,” said Kelvin Kiiru, Investment Associate at Finnfund. “Improving digital connectivity through affordable broadband supports economic growth and enables inclusive access to remote work, education, healthcare, and financial services.”
The investment comes at a critical time for Kenya’s digital economy. While internet penetration stood at 48.0% in January 2025 with 27.4 million users, significant disparities persist between urban and rural areas. According to recent Communications Authority of Kenya data, urban residents (64.6%) far outpace rural counterparts (48.6%) in mobile phone ownership, with adoption closely linked to income, education, and access to reliable electricity.
Strategic Partnership Under EU Global Gateway Initiative
The funding is supported by the European Union and the European Fund for Sustainable Development Plus (EFSD+), as part of the EU’s Global Gateway initiative. This €300 billion investment framework aims to boost smart, clean and secure links in digital, energy and transport sectors across developing countries.
EU Ambassador to Kenya, Henriette Geiger, emphasized that the project demonstrates how private sector partnerships can make digital inclusion a reality in Africa. “It proves that human-centred digitalisation is not just a vision, but a reality—one that empowers people, creates opportunities, and strengthens social inclusion,” Geiger stated.
The partnership represents a broader strategic alignment between Finland and Kenya in digital infrastructure development. Earlier in May 2025, Finland’s President Alexander Stubb and First Lady Suzanne Innes-Stubb visited Poa Internet operations in Kawangware, Nairobi, highlighting the company’s role in connecting low-income households and showcasing how affordable internet access is transforming communities.
Poa Internet’s Market Position and Growth Strategy
Founded in 2015 and headquartered in Nairobi, Poa Internet has built its business around offering unlimited internet at prices designed for mass-market adoption, gaining significant traction in Nairobi’s satellite estates and informal settlements. The company operates with 340 employees and focuses on wireless high-speed broadband delivery to homes and small businesses in low-income and semi-rural areas.
“We are delighted to be partnering with Finnfund on our mission to bring internet access to every home in Africa,” said Andy Halsall, CEO of Poa Internet. “Using Finnfund’s financing and Nokia’s fibre infrastructure, we will reach more communities and increase digital inclusion.”
The investment builds on Poa Internet’s strong market performance, with the company adding 23,461 subscribers in the quarter ending June 2025. Africa50 previously invested in the company, recognizing its potential to bridge Africa’s digital divide by increasing access to reliable and affordable internet for previously unconnected communities.
Finnfund’s Strategic Digital Infrastructure Focus
This investment aligns with Finnfund’s expanded focus on digital infrastructure as a strategic priority. The Finnish development financier recently launched the Finnfund Digital Access Impact Fund I (DAIF), raising €80 million in its first closing to invest in digital infrastructure and solutions across Africa, Asia, and Latin America.
“At Finnfund, digital infrastructure is one of our strategic priorities,” Kiiru explained. “Digital tools and technologies are key drivers of economic growth, boosting productivity, fostering innovation and opening new markets.”
Finnfund invests 200-250 million euros annually in 20-30 companies across developing countries, with total investments and commitments of approximately 1.23 billion euros, half of which are in Africa. The organization is owned by the Finnish State (96.60%), Finnvera (3.34%), and the Confederation of Industries (0.06%), positioning it as a key instrument of Finland’s development cooperation policy.
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Market Context and Competitive Landscape
Kenya’s telecommunications market remains dominated by major players, with Safaricom leading mobile subscriptions at 65.7%, followed by Airtel Networks Kenya (29.6%), Finserve Equitel (2.1%), and Telkom Kenya (1.7%). In the fixed internet segment, Poa Internet competes against established providers while targeting underserved market segments.
The company’s business model of offering unlimited internet services at significantly lower prices than alternative providers (more than 50% cheaper in many cases) has proven successful in penetrating price-sensitive markets. This approach directly addresses affordability barriers that have historically limited broadband adoption in low-income communities.
Recent market data shows Kenya’s fixed internet subscriptions reaching new highs, with active mobile subscriptions growing to 70.0 million by September 2024, representing a penetration rate of 135.8%. However, the quality and affordability of fixed broadband services remain significant challenges, particularly in peri-urban and rural areas.
Regional Expansion and Continental Ambitions
Beyond Kenya, Poa Internet has continental expansion plans supported by international partners. The U.S. Trade and Development Agency (USTDA) has partnered with the company to conduct market assessments across 14 African countries, recommending three target markets for expansion outside Kenya.
“Poa Internet has been facilitating access to unlimited affordable broadband to underserved lower-income urban communities across Kenya,” Halsall noted. “This partnership positions us to replicate this success across Africa.”
The USTDA-funded study includes detailed market analysis covering supply and demand assessments, regulatory and legal analysis, environmental and social impact evaluation, and go-to-market recommendations for identified expansion markets.
Technology Infrastructure and Innovation
Nokia’s partnership with Poa Internet brings world-class telecommunications technology to underserved markets. The collaboration leverages Nokia’s expertise in fiber-optic infrastructure, network optimization, and cost-effective deployment strategies specifically designed for emerging markets.
The technical approach focuses on maximizing coverage while minimizing infrastructure costs, using innovative network architectures that can deliver high-speed internet services even in challenging deployment environments. This technology transfer represents a significant opportunity for knowledge sharing and local capacity building within Kenya’s telecommunications sector.
Economic Impact and Development Outcomes
The investment is expected to generate substantial economic and social impacts across multiple dimensions. Improved internet connectivity enables small businesses to engage in digital trade, access global value chains, and participate in the digital economy. Educational institutions gain access to online resources and distance learning capabilities, while healthcare providers can leverage telemedicine and digital health solutions.
According to impact assessments, affordable internet access in previously unconnected communities typically results in increased economic activity, improved educational outcomes, enhanced healthcare delivery, and greater financial inclusion through mobile money and digital banking services.
The project also supports women’s economic empowerment by providing access to digital platforms for entrepreneurship, online education, and remote work opportunities. This aligns with both Finnfund’s gender equality objectives and the EU’s commitment to inclusive development.
Broader EU-Africa Digital Partnership
The Poa Internet investment forms part of a broader EU-Africa digital partnership framework. Under the Global Gateway Africa Investment Package, the EU aims to accelerate universal access for all Africans to reliable internet networks by 2030.
Recent initiatives include the Blue Raman submarine cable project, an 11,700-kilometer intercontinental connection stretching from Europe to India with intermediate landings in Eastern Africa, operational by end-2025. The €400 million project creates high-speed and diversified data connectivity along the EU-Africa-India digital corridor.
Additionally, the EU and Smart Africa recently strengthened their partnership for Africa’s digital transformation, with flagship projects on data governance and e-governance designed to harmonize regulations and attract investment in secure data infrastructure.
Financial Structure and Risk Management
The debt financing structure reflects Finnfund’s sophisticated approach to development finance, combining commercial viability with development impact. As a debt investment rather than equity participation, the arrangement provides Poa Internet with growth capital while maintaining operational independence and local ownership.
Finnfund’s risk assessment methodology incorporates both financial and development criteria, ensuring investments deliver measurable social and environmental benefits alongside financial returns. The organization’s experience managing similar investments across Africa provides valuable expertise in navigating regulatory environments and market dynamics.
The European Fund for Sustainable Development Plus backing provides additional risk mitigation through guarantee mechanisms, enabling Finnfund to support higher-impact projects that might otherwise be considered too risky for commercial investment.
Regulatory Environment and Policy Support
Kenya’s telecommunications regulatory environment has evolved significantly to support increased competition and investment in the sector. The Communications Authority of Kenya has implemented policies encouraging infrastructure sharing, spectrum efficiency, and service quality improvements.
Recent regulatory initiatives include streamlined licensing procedures for internet service providers, infrastructure sharing mandates to reduce deployment costs, and consumer protection measures ensuring service quality and fair pricing. These reforms create an enabling environment for companies like Poa Internet to expand their services cost-effectively.
The government’s Vision 2030 development strategy emphasizes ICT as a key enabler of economic growth, with specific targets for broadband penetration, digital literacy, and e-government services. This policy alignment provides long-term support for digital infrastructure investments.
Challenges and Market Opportunities
Despite significant progress, Kenya’s digital economy faces persistent challenges including infrastructure gaps, affordability constraints, and skills shortages. High-speed broadband adoption remains concentrated in urban centers, while rural and peri-urban areas experience limited coverage and higher costs.
However, these challenges represent substantial market opportunities for innovative service providers. The growing youth population, increasing smartphone adoption, and expanding digital literacy create favorable conditions for broadband service expansion. Mobile money usage, led by platforms like M-Pesa, has demonstrated Kenyans’ readiness to embrace digital services when they are accessible and affordable.
The COVID-19 pandemic accelerated digital adoption across Africa, creating sustained demand for reliable internet connectivity to support remote work, distance learning, and digital commerce. This trend continues to drive market growth and investment opportunities.
Looking Ahead: Sustainable Development Goals Alignment
The Finnfund-Poa Internet partnership directly supports multiple United Nations Sustainable Development Goals, including SDG 9 (Industry, Innovation and Infrastructure), SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), and SDG 5 (Gender Equality).
By 2030, the investment is expected to contribute to Kenya’s goal of achieving universal broadband access, supporting the country’s transition to a digital economy and positioning it as a regional technology hub. The success of this model could be replicated across other African markets, potentially impacting millions of users continent-wide.
“This new investment, supported by the European Union and the European Fund for Sustainable Development Plus, underscores our commitment to fostering digital inclusion and economic growth across the continent,” Kiiru concluded.
Why This Matters for Africa’s Digital Future
Kenya has one of Africa’s most dynamic digital economies, yet broadband penetration remains uneven. Cost, infrastructure gaps, and accessibility challenges continue to limit access in low-income and peri-urban areas, precisely the markets where Poa Internet focuses its services.
By targeting underserved neighborhoods, Poa Internet is addressing a critical barrier to digital transformation. Affordable internet access enables small businesses to engage in digital trade and access global value chains, while individuals gain access to educational resources, healthcare services, and economic opportunities previously beyond their reach.
The success of this partnership will be closely watched across Africa as a potential model for combining private sector innovation, development finance, and international cooperation to achieve inclusive digital development. For Kenya, it represents another step toward realizing its vision as a regional digital hub and technology leader.
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By: Montel Kamau
Serrari Financial Analyst
29th August, 2025
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