Stanbic Bank Kenya is making an ambitious play in East Africa’s startup ecosystem, unveiling plans to raise $100 million through its Catalytic Fund to invest in early-stage ventures.

In a departure from the traditional playbook of commercial banking, Stanbic says it is targeting underfunded sectors such as agritech, healthtech, manufacturing, and the creative economy—areas that often struggle to attract venture capital.

By focusing on high-potential but riskier startups, the bank aims to broaden access to capital for the estimated 80% of businesses typically excluded from mainstream funding. The strategy appears designed to build long-term relationships with founders who could become tomorrow’s business leaders.

Stanbic’s bold move contrasts sharply with the more conservative approach of many African banks, which tend to favour low-risk lending. For instance, South Africa’s Absa Bank recently secured a $150 million facility to support women and youth-led small and medium-sized enterprises—a safer, more conventional route.

If successful, Stanbic Bank Kenya’s startup pivot could redefine how African financial institutions engage with the continent’s innovation economy, setting a precedent for others to follow.