The Kenya Development Corporation (KDC) has disbursed Sh500 million to Githunguri Dairy Cooperative Society (GDC) through the World Bank-supported ‘Supporting Access to Finance for Economic Recovery’ (SAFER) Programme.
Safer initiative aims at expanding affordable credit, fostering innovation and strengthening resilience among micro, small and medium enterprises (MSMEs).
Importantly, the programme also seeks to support economic recovery by strengthening financial pathways available to small enterprises. it is implemented in collaboration with the Government and development partners to promote sustainable growth within key productive sectors.
SAFER is also part of broader government and international efforts to support inclusive economic growth and provide sustainable financing solutions to the agricultural and industrial sectors.
While presenting the cheque to the cooperative Wednesday, Cabinet Secretary (CS) for Investments, Trade and Industry, Lee Kinyanjui commended GDC for its strong governance and professional management.
“Githunguri Dairy Cooperative is a model worth emulating, and I am pleased to note its expansion to both Nairobi and Nakuru counties,” he expressed.
The CS added that the Ministry, through KDC, is exploring ways to make long-term credit more accessible. “We are considering extending the lending period from seven years to ten years and reducing the interest rate from nine to eight percent to support investors and institutions, particularly those involved in capital-intensive industrial projects,” hinted Kinyanjui.
Speaking at the event, the Principal Secretary (PS) for Investment Promotion, Abubakar Hassan Abubakar, highlighted the Government’s role in de-risking MSME financing pointing out that the SAFER Programme demonstrates the Government’s commitment to advancing the Bottom-Up Economic Transformation Agenda.
“We are empowering farmers and small enterprises to drive inclusive economic growth,” he emphasised.
On her part, World Bank Financial Sector Specialist, Leah Kiwara, highlighted the importance of strengthened partnerships in supporting small businesses.
“Today’s partnership is a clear demonstration towards closing the financing gap that continues to limit the growth of MSMEs across the country,” she asserted, noting that monitoring impact and highlighting success stories is critical to drive meaningful and sustainable MSME growth.
On the other hand, KDC Director General (DG), Norah Ratemo disclosed that the corporation has so far disbursed Sh3.2 billion to 11 SACCOs for onward lending, benefiting 36,990 MSMEs, including 12,221 women-owned enterprises, and creating 25,637 jobs across 32 counties.
Further, she revealed that an additional Sh3.9 billion has been earmarked for onboarding 13 more SACCOs under the programme’s digital lending window to expand outreach and improve financial inclusion.
In his remarks, Githunguri Dairy Cooperative Society Chief Executive Officer (CEO), Charles Kioko said the cooperative has grown into one of Kenya’s most dynamic dairy enterprises, with nine branches across Nairobi and Nakuru counties.
Similarly, he noted that GDC’s strong governance and financial stability has enabled it to support farmers effectively.
In addition, Kioko announced that the Cooperative’s Bonyeza Digital Loan product has emerged as a transformative financing tool, offering fast and accessible mobile-based credit to MSMEs and helping farmers expand their operations.
Meanwhile, KDC, established in 2020, is a state corporation under the Ministry of Investments, Trade and Industry, is mandated to promote economic development through development finance, infrastructure support, business advisory services, and targeted investment in medium and large-scale industries across Kenya.
By Naif Rashid
