Nairobi: The Kenya Development Corporation (KDC) has disbursed Sh500 million to Githunguri Dairy Cooperative Society (GDC) through the World Bank-supported 'Supporting Access to Finance for Economic Recovery' (SAFER) Programme. This initiative aims to expand affordable credit, foster innovation, and strengthen resilience among micro, small, and medium enterprises (MSMEs).
According to Kenya News Agency, the programme seeks to support economic recovery by enhancing financial pathways available to small enterprises. It is implemented in collaboration with the government and development partners to promote sustainable growth within key productive sectors. SAFER is part of broader governmental and international efforts to support inclusive economic growth and provide sustainable financing solutions to the agricultural and industrial sectors.
Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, commended GDC for its strong governance and professional management while presenting the cheque to the cooperative. He highlighted its expansion to both Nairobi and Nakuru counties as a model worth emulating. Kinyanjui also mentioned that the Ministry, through KDC, is exploring ways to make long-term credit more accessible by considering extending the lending period and reducing interest rates to support capital-intensive industrial projects.
Principal Secretary for Investment Promotion, Abubakar Hassan Abubakar, emphasized the government's role in de-risking MSME financing. He pointed out that the SAFER Programme demonstrates the government's commitment to advancing the Bottom-Up Economic Transformation Agenda, empowering farmers and small enterprises to drive inclusive economic growth.
World Bank Financial Sector Specialist, Leah Kiwara, highlighted the importance of strengthened partnerships in supporting small businesses. She noted that the partnership aims to close the financing gap limiting MSME growth and stressed the importance of monitoring impact and highlighting success stories to drive meaningful and sustainable growth.
KDC Director General, Norah Ratemo, disclosed that the corporation has disbursed Sh3.2 billion to 11 SACCOs for onward lending, benefiting 36,990 MSMEs, including 12,221 women-owned enterprises, and creating 25,637 jobs across 32 counties. She revealed an additional Sh3.9 billion has been earmarked for onboarding more SACCOs under the programme's digital lending window to expand outreach and improve financial inclusion.
Githunguri Dairy Cooperative Society CEO, Charles Kioko, stated that the cooperative has grown into one of Kenya's most dynamic dairy enterprises with branches across Nairobi and Nakuru counties. He highlighted the cooperative's strong governance and financial stability, which have enabled effective support for farmers. Additionally, Kioko announced that the Cooperative's Bonyeza Digital Loan product is a transformative financing tool offering fast and accessible mobile-based credit to MSMEs, aiding farmers in expanding their operations.
Established in 2020, KDC is a state corporation under the Ministry of Investments, Trade, and Industry, mandated to promote economic development through development finance, infrastructure support, business advisory services, and targeted investment in medium and large-scale industries across Kenya.