CAF, the continental football body, has decided to support all clubs that reached first round of the Champions League with the fund.
Gor Mahia were eliminated by Algeria’s CR Belouizdad in the group stage’s penultimate round.
The financial boost is timely for K’Ogalo who are enduring lean times and have gone months without paying salary.
The team’s on field performance is equally bad and have so far lost five games in the Kenyan Premier League this season.