The Kenya Development Corporation (KDC) has injected Sh500 million into the Githunguri Dairy Cooperative Society to expand financing for micro, small, and medium-sized enterprises (MSMEs), thereby strengthening the dairy value chain and improving access to long-term credit for agribusiness investors.
The investment forms part of a wider national effort to increase affordable financing for capital-intensive projects, particularly in agriculture and rural enterprise development.
Trade and Investment Cabinet Secretary Lee Kinyanjui said the corporation is reviewing its lending framework to make credit more accessible and flexible for investors.
“Through the KDC, we are looking at extending the lending period from the current seven years to ten years and reducing the interest rate from 9 per cent to 8 per cent,” he said.
“The objective is to make long-term credit more accessible to investors and institutions, particularly those involved in capital-intensive industrial projects.”
The funding has been provided under the World Bank-backed Supporting Access to Finance for Economic Recovery (SAFER) programme, which seeks to drive MSME growth by improving credit access and supporting innovation across key sectors.
KDC director general Norah Ratemo said the corporation’s impact on Kenya’s financial inclusion landscape continues to grow.
“KDC has disbursed Sh3.2 billion to 11 SACCOs for onward lending, supporting 36,990 MSMEs, including 12,221 women-owned enterprises, and creating 25,637 jobs across 32 counties,” she said.
“A further Sh3.9 billion has been earmarked for onboarding 13 additional SACCOs under the programme’s digital lending window, deepening outreach and strengthening Kenya’s financial inclusion landscape.”
World Bank financial sector specialist Leah Kiwara said the partnership is helping close the financing gap that has long limited MSME expansion.
“This partnership demonstrates ongoing efforts to close the financing gap affecting MSMEs across the country. Moving forward, monitoring impact and highlighting success stories is critical to drive meaningful and sustainable growth.”
Source: Capital FM
