The fund will target to provide early-stage funding to promising start-ups and founders.
It will fund, train and connect Kenyan small and medium-sized enterprises (SMEs) with investors.
The UAE fund did not immediately state how much of its war chest will be channelled into Kenya.
The Khalifa Fund for Enterprise Development, which is backed by the government of the emirate of Abu Dhabi has announced it will establish an innovation and entrepreneurship centre in Kenya with an eye on Kenya deals.
The announcement was made by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan, the UAE's de facto ruler, on the back of President Uhuru Kenyatta’s recent visit to the Emirate for bilateral talks.
The fund will target to provide early-stage funding to promising start-ups and founders. It will fund, train and connect Kenyan small and medium-sized enterprises (SMEs) with investors.
“This collaboration between the UAE and Kenya will see the two respective nations implement Khalifa Fund’s successful model to the new innovation and entrepreneurism centre with the aim of reflecting the same levels of achievement in Kenya,” said the Khalifa Fund and the Abu Dhabi Department of Economic Development chairman Mohammed Ali Al Shorafa Al Hammadi in a statement.
The UAE fund did not immediately state how much of its war chest will be channelled into Kenya.
Khalifa Fund was established by the government of Abu Dhabi with total capital of Sh61.9 billion ($545 million) in 2007.
“With centres such as these, we provide entrepreneurs with resources, support and guidance to contribute to their local and global economy,” Al Hammadi said.
The fund says on its website that it has disbursed loans amounting to Sh40.8 billion (1.32 billion AED).
Analysts say innovations and a ready pool of users have turned Kenya into a centre of innovation, attracting major players in the world of US venture capital, some with investments from top-tier investment firms in Silicon Valley.
