In a bid to increase access to long-term credit for investors and capital-intensive projects, Kenya Development Corporation (KDC) has allocated Sh500 million to Githunguri Dairy Cooperative Society (GDC).
This significant financial injection is specifically targeted at expanding financing opportunities available to micro, small, and medium enterprises (MSMEs) across the region, which are vital for Kenya’s economic acceleration and recovery.
Speaking on the initiative at the KDC offices in Nairobi on Thursday, Trade and Investment Cabinet Secretary Lee Kinyanjui detailed the Corporation’s plans to make development financing both more affordable and more flexible for borrowers.
“Through the KDC, we are actively exploring ways to enhance lending terms and we are also looking at extending the standard lending period from the current seven years to ten years while simultaneously reducing the applicable interest rate from 9 percent to 8 percent,” the CS said.
“The primary objective is to make crucial long-term credit more accessible to institutional investors and cooperative entities, particularly those heavily involved in essential capital-intensive industrial development projects vital for national growth,” he added.
The financing is being provided under the banner of the World Bank-backed Supporting Access to Finance for Economic Recovery (SAFER) Programme whose primary mandate is to foster substantial growth within the MSME sector by improving credit access, encouraging innovation, and strengthening the overall financial ecosystem.
On her part, World Bank Financial Sector Specialist Leah Kiwara noted that the partnership clearly demonstrated the ongoing collective efforts to close the significant financing gap that continues to limit the growth potential of MSMEs throughout the country.
“Moving forward, effective monitoring of the impact and prominently highlighting successful business stories remains absolutely critical to driving meaningful and sustainable economic growth,” she said.
Additionally, KDC Director General Norah Ratemo highlighted the Corporation’s impressive and broad impact on Kenya’s financial inclusion efforts to date.
“KDC has already successfully disbursed Sh3.2 billion to 11 Savings and Credit Cooperative Societies (SACCOs) for onward lending, funding that has directly supported a remarkable 36,990 MSMEs, including 12,221 enterprises that are women-owned. It has also successfully created 25,637 jobs across 32 counties in the country,” she said.
“A further allocation of Sh3.9 billion has been earmarked for onboarding 13 additional SACCOs through the programme’s streamlined digital lending window in the near future. The current recipient, Githunguri Dairy Cooperative, has already demonstrated strong growth, currently operating nine branches across Nairobi and Nakuru counties, making it a key partner in this economic expansion effort. This will significantly deepen our outreach and further strengthen Kenya’s comprehensive financial inclusion landscape.” She noted.
By Hellen Lunalo
