GuarantCo, an infrastructure-focused guarantor active across Africa and Asia, has issued a US$20 million guarantee to Kenya-based Dhamana Guarantee Company, the institution said on Wednesday, Jan. 28, 2026.
The 23-year guarantee is intended to strengthen Dhamana’s capital base and expand its capacity to provide local-currency guarantees for infrastructure projects across East Africa. The move is expected to attract institutional investors to innovative asset classes that deliver both financial returns and developmental benefits.
Christopher Olobo, Dhamana’s CEO, said the partnership would support the growth of local capital markets and promote “inclusive, climate-resilient growth” in Kenya and the wider East African region.
Dhamana will apply the funds exclusively to projects aligned with the Paris Agreement, with an estimated 30% to 40% of its portfolio qualifying as climate finance, GuarantCo said. The guarantee is part of a broader effort to mobilise private capital for sustainable infrastructure in low- and middle-income countries, leveraging GuarantCo’s more than two decades of experience in the sector.
“This collaboration strengthens our ability to develop local-currency infrastructure financing, which is critical in addressing East Africa’s growing infrastructure needs,” Olobo added.
The guarantee highlights the role of financial instruments in reducing investment risk and unlocking local capital for long-term infrastructure projects. Experts say such mechanisms can help close financing gaps for roads, power, water, and other essential services while promoting environmental sustainability.
GuarantCo, which works with governments, financial institutions, and private developers, has provided similar guarantees in multiple African and Asian markets. Its support is designed to enhance investor confidence, enabling local banks and institutional investors to participate in projects that might otherwise be considered high-risk.
Kenya and its neighbours face persistent infrastructure financing challenges, particularly for projects requiring long-term funding in local currency. By backing Dhamana, GuarantCo aims to catalyse domestic investment in sectors that support climate goals, economic development, and urban resilience.
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The deal is expected to serve as a model for sustainable infrastructure finance in East Africa, demonstrating how risk mitigation tools can be used to mobilise private capital for public benefit.
