Kenya Development Corporation (KDC) has allocated Sh500 million to Githunguri Dairy Cooperative Society (GDC) in an effort to expand access to long-term credit for investors and capital-intensive ventures.
The financing aims to widen credit opportunities for micro, small, and medium enterprises (MSMEs) across the region, an economic segment considered crucial for the country’s growth and post-pandemic recovery.
Speaking at KDC offices in Nairobi, Trade and Investment Cabinet Secretary Lee Kinyanjui outlined the Corporation’s plan to make development financing more flexible and affordable.
“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 per cent to 8 per cent,” 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 allocation is part of the World Bank-supported Supporting Access to Finance for Economic Recovery (SAFER) Programme, designed to spur growth within the MSME sector by improving access to credit, supporting innovation, and strengthening the financial ecosystem.
World Bank Financial Sector Specialist Leah Kiwara said the partnership reflects the ongoing efforts to address the financing constraints that continue to hinder MSME expansion.
“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.
KDC Director General Norah Ratemo emphasized the Corporation’s growing contribution to financial inclusion, noting that its interventions have reached a wide segment of the country.
“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.
These include Githunguri Dairy Cooperative Society, Boresha Sacco, K-Unity Sacco, Amica Sacco, Fortune Sacco, Skyline Sacco, Yetu Sacco, Solution Sacco, Apstar Sacco, Trans-Elite Sacco and the Agricultural Finance Corporation.
“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.
