Nairobi: 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.
According to Kenya News Agency, Trade and Investment Cabinet Secretary Lee Kinyanjui, speaking at the KDC offices in Nairobi, detailed the Corporation's plans to make development financing more affordable and flexible for borrowers. Kinyanjui highlighted efforts to enhance lending terms by potentially extending the standard lending period from seven years to ten years, while reducing the interest rate from 9 percent to 8 percent. The primary objective is to make crucial long-term credit more accessible to institutional investors and cooperative entities engaged in capital-intensive industrial development projects essential for national growth.
The financing is being provided under the World Bank-backed Supporting Access to Finance for Economic Recovery (SAFER) Programme. This initiative aims to foster substantial growth within the MSME sector by improving credit access, encouraging innovation, and strengthening the financial ecosystem. World Bank Financial Sector Specialist Leah Kiwara emphasized the importance of this partnership in closing the significant financing gap that limits the growth potential of MSMEs throughout the country. Effective monitoring and highlighting successful business stories are crucial for driving sustainable economic growth.
KDC Director General Norah Ratemo underscored the Corporation's impact on Kenya's financial inclusion efforts. KDC has disbursed Sh3.2 billion to 11 Savings and Credit Cooperative Societies (SACCOs) for onward lending, directly supporting 36,990 MSMEs, including 12,221 women-owned enterprises. This funding has created 25,637 jobs across 32 counties. A further allocation of Sh3.9 billion is earmarked for onboarding 13 additional SACCOs through the programme's digital lending window. Githunguri Dairy Cooperative, currently operating nine branches across Nairobi and Nakuru counties, is a key partner in this economic expansion effort, significantly deepening outreach and strengthening Kenya's financial inclusion landscape.