The Kenya Development Corporation (KDC) today advanced Ksh 500 million to the Githunguri Dairy Cooperative Society (GDC). The funds aim to accelerate financing for Micro, Small, and Medium Enterprises (MSMEs) in the agricultural sector.
The investment is part of the World Bank’s Supporting Access to Finance for Economic Recovery (SAFER) Programme, an initiative designed to unlock credit, foster innovation, and build resilience among Kenyan MSMEs.
The Cabinet Secretary for Investments, Trade and Industry (MITI), Hon. Lee Kinyanjui, officially presented the cheque to GDC, commending the cooperative for its exemplary operations.
CS Kinyanjui lauded GDC for its robust performance and governance, stating, “I wish to congratulate GDC for its strong track record in professional management and sound governance. The cooperative is a model worth emulating, and I am pleased to note its expansion to both Nairobi and Nakuru counties.”
Looking ahead, the CS announced that MITI, through KDC, is actively exploring ways to enhance credit accessibility for large-scale and capital-intensive projects:
- Extending the lending period from the current 7 years to 10 years.
- Reducing the interest rate from 9% to 8%.
The Principal Secretary for the State Department for Investment Promotion, Mr. Abubakar Hassan Abubakar, emphasized the alignment of the funding with national goals. “The SAFER Programme demonstrates Government’s commitment to de-risking MSME financing and advancing the Bottom-Up Economic Transformation Agenda,” he stated. “We are empowering farmers and small enterprises to drive inclusive and economic growth.”
Ms. Leah Kiwara, Financial Sector Specialist at the World Bank, echoed this sentiment, highlighting the partnership’s role in addressing crucial gaps. “Today’s partnership is a clear demonstration towards closing the financing gap that continues to meet the growth of MSMEs across the country. As we move forward, monitoring impact and highlighting success stories is critical to drive meaningful and sustainable MSME growth.”
KDC Director General, Ms. Norah Ratemo, provided an update on the Corporation’s significant achievements under the program, noting that KDC has already disbursed Ksh 3.2 billion to 11 SACCOs for onward lending. This funding has supported 36,990 MSMEs, including 12,221 women-owned enterprises, and resulted in the creation of 25,637 jobs across 32 counties.
She also announced that a further Ksh. 3.9 billion has been earmarked for 13 additional SACCOs under the programme’s digital lending window, reinforcing Kenya’s financial inclusion landscape.
Githunguri Dairy Cooperative Society, recognized as one of Kenya’s most dynamic cooperatives with nine branches, stands out for its strong financial stability and sectoral impact. Mr. Charles Kioko highlighted the success of their digital offering: “The Bonyeza Digital Loan product has emerged as a transformative tool offering fast, affordable, and accessible financing for MSMEs, enabling farmers to access the facility easily on their mobile phones.”
Kenya Development Corporation (KDC) is a state Corporation under the Ministry of Investments, Trade and Industry (MITI), established in 2020. Its mandate is to promote sustainable economic development by providing development finance, appropriate infrastructure, business support, and advisory services.