NAIROBI, Kenya – The Kenya Development Corporation (KDC) has unveiled a significant Sh2 billion credit facility aimed at bolstering Small and Medium Enterprises (SMEs) in Kenya.
The financing initiative, in partnership with India’s Export-Import Bank, is designed to empower local businesses by offering favorable financial terms for the acquisition of advanced technology, machinery, and equipment from India.
This strategic move is expected to accelerate Kenya’s industrial modernization, enhance competitiveness, and foster sustainable economic growth.
According to Kennedy Wanderi, the Acting Director of Corporate Services at KDC, the terms of the facility are notably advantageous, with interest rates set at single-digit figures—half the prevailing commercial rates in Kenyan banks.
“The terms are extremely friendly, making it easier for SMEs to access the capital they need to grow and modernize,” Wanderi noted.
Hassan Abubakar, Principal Secretary of the State Department for Investment Promotion, emphasized Kenya’s commitment to fostering investment and technological transfer through strategic partnerships.
“Embracing this facility offers numerous benefits. Acquiring advanced technology will significantly boost productivity and competitiveness within our industries,” Abubakar stated.
He also highlighted the facility’s potential to create jobs and enhance skill development across various sectors.
The announcement was made during a meeting that brought together key stakeholders, including representatives from the High Commission of India, the Export-Import Bank of India, GOMA Oversees PVT Ltd, the Kenya Association of Manufacturers (KAM), the Kenya Dairy Board, and other industry players.
The Kenyan government pledged its support for the initiative, promising timely approval of tax exemptions and other necessary measures to ensure the seamless implementation of the credit facility.
Since 2021, KDC has lent Sh3.5 billion to businesses, pushing its active loan book to Sh7 billion, including loans inherited from three merged Development Finance Institutions (DFIs).
The corporation’s efforts are part of a broader strategy to reduce defaults and stimulate economic growth in Kenya through targeted financial support.
The financing initiative, in partnership with India’s Export-Import Bank, is designed to empower local businesses by offering favorable financial terms for the acquisition of advanced technology, machinery, and equipment from India.
This strategic move is expected to accelerate Kenya’s industrial modernization, enhance competitiveness, and foster sustainable economic growth.
According to Kennedy Wanderi, the Acting Director of Corporate Services at KDC, the terms of the facility are notably advantageous, with interest rates set at single-digit figures—half the prevailing commercial rates in Kenyan banks.
“The terms are extremely friendly, making it easier for SMEs to access the capital they need to grow and modernize,” Wanderi noted.
Hassan Abubakar, Principal Secretary of the State Department for Investment Promotion, emphasized Kenya’s commitment to fostering investment and technological transfer through strategic partnerships.
“Embracing this facility offers numerous benefits. Acquiring advanced technology will significantly boost productivity and competitiveness within our industries,” Abubakar stated.
He also highlighted the facility’s potential to create jobs and enhance skill development across various sectors.
The announcement was made during a meeting that brought together key stakeholders, including representatives from the High Commission of India, the Export-Import Bank of India, GOMA Oversees PVT Ltd, the Kenya Association of Manufacturers (KAM), the Kenya Dairy Board, and other industry players.
The Kenyan government pledged its support for the initiative, promising timely approval of tax exemptions and other necessary measures to ensure the seamless implementation of the credit facility.
Since 2021, KDC has lent Sh3.5 billion to businesses, pushing its active loan book to Sh7 billion, including loans inherited from three merged Development Finance Institutions (DFIs).
The corporation’s efforts are part of a broader strategy to reduce defaults and stimulate economic growth in Kenya through targeted financial support.
