Nairobi — Kenya Development Corporation (KDC) has injected Sh500 million into Githunguri Dairy Cooperative Society (GDC) to expand financing for micro, small, and medium enterprises (MSMEs).
The move is part of broader efforts to increase access to long-term credit for investors and capital-intensive projects.
Trade and Investment Cabinet Secretary Lee Kinyanjui said the corporation is exploring ways to make financing more affordable and flexible.
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"Through the KDC, we are looking at extending the lending period from the current seven years to ten years and reducing the interest rate from 9pc to 8pc," he said.
"The objective is to make long-term credit more accessible to investors and institutions, particularly those involved in capital-intensive industrial projects."
The funding is provided under the World Bank-backed Supporting Access to Finance for Economic Recovery (SAFER) Programme, which aims to grow MSMEs by improving credit access and supporting innovation.
KDC Director General Norah Ratemo highlighted the corporation's wider impact on Kenya's financial inclusion landscape.
"KDC has disbursed Sh3.2 billion to 11 SACCOs for onward lending, supporting 36,990 MSMEs, including 12,221 women-owned enterprises, and creating 25,637 jobs across 32 counties," she said.
"A further Sh3.9 billion has been earmarked for onboarding 13 additional SACCOs under the programme's digital lending window, deepening outreach and strengthening Kenya's financial inclusion landscape."
World Bank Financial Sector Specialist Leah Kiwara said the partnership is helping bridge the financing gap that limits MSME growth.
"This partnership demonstrates ongoing efforts to close the financing gap affecting MSMEs across the country. Moving forward, monitoring impact and highlighting success stories is critical to drive meaningful and sustainable growth."
Githunguri Dairy Cooperative has seen rapid expansion, now operating nine branches across Nairobi and Nakuru counties.
