The Government of Kenya has launched the Supporting Access to Finance and Enterprise Recovery (SAFER) Project. The project will be implemented through the Kenya Development Corporation (KDC).
The project aims to increase access to financial services, enhance capabilities, support the recovery of Micro, Small, and Medium Enterprises (MSMEs) after COVID-19, and foster long-term growth.
Through SAFER, individual micro-enterprises will access loans ranging from Ksh. 7,000 to Ksh. 150,000, while small enterprises can access loans ranging from Ksh. 150,001 to Ksh. 250,000.
Microloans will have a tenor of up to 18 months, while small loans will extend up to three years. This will empower MSMEs to manage their cash flows effectively and pursue growth opportunities.
The funds will be channeled from the National Treasury to KDC, which will then on-lend to several Participating Financial Institutions (PFIs) including Micro Finance Institutions, Licensed Digital Lenders and SACCOs, who in turn will on-lend to MSMEs.
Formally referred to as Nawiri Wholesale Loan, KDC will disburse this facility to SASRA-regulated SACCOs, Licensed Micro Finance Institutions and Tier III commercial banks focused on lending to MSMEs.
Commenting on the SAFER project, Cabinet Secretary Ministry of Investments, Trade and Industry Rebecca Miano said, “The SAFER project will break down financial barriers for MSMEs through policy reforms, innovative financing, and capacity building. We are confident that through this initiative, we will ignite a spark of economic revitalization across Kenya.”
SAFER is designed to address the needs of MSMEs by providing essential financial support for their working capital requirements including salaries, rent expenses, and more.
The SAFER Project is supported by key stakeholders including the National Treasury, World Bank, and Participating Financial Institutions (PFIs). Through collaboration with these partners, the project aims to have a tangible impact on the lives of MSMEs across Kenya.