NAIROBI, Kenya– The National Treasury and the Kenya Development Corporation (KDC) have injected Sh2.625 billion into Micro, Small and Medium Enterprises (MSMEs) over the past 12 months under a five-year credit scheme designed to ease financing bottlenecks.
The Supporting Access to Finance and Enterprise Recovery (SAFER) programme, valued at $55 million (Sh7.2 billion), was rolled out to cushion small firms from liquidity constraints that worsened during the COVID-19 downturn.
KDC data shows that 36,990 entrepreneurs in 32 counties have already tapped the facility, signaling faster recovery among vulnerable businesses. Women-owned firms account for 28.8 percent of the loans, translating to 12,221 borrowers.
“Roughly 9.7 percent of the funds have been deployed to green economy and climate-smart ventures,” KDC noted in a statement.
Funds are disbursed through partner financial institutions (PFIs), which are also undergoing technical capacity building to strengthen compliance, reporting, and risk frameworks.
A four-day workshop in Nairobi has convened lenders, regulators, and industry stakeholders to streamline oversight and improve data sharing.
Regulatory agencies, including the Sacco Societies Regulatory Authority (SASRA), are tightening scrutiny on how credit is distributed, while embedding transparency in deployment.
The programme has further introduced Environmental, Social and Governance (ESG) benchmarks into lending, compelling PFIs to run environmental and social risk assessments before approving credit lines.
Officials argue that this model not only supports post-pandemic stabilization but also drives MSMEs toward sustainable growth.
Looking ahead, the initiative is preparing to incorporate a Digital Lending Window to expand access to cheaper loans, particularly targeting underserved entrepreneurs in informal and rural markets.
The digital channel is expected to widen financial inclusion while quickening capital flows.
MSMEs remain a backbone of Kenya’s economy, contributing more than a third of GDP and employing the majority of the private sector workforce.
Treasury views SAFER as a cornerstone programme for structural recovery, anchoring resilience, inclusivity, and climate-conscious investments.
