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Norah Ratemo,Director General (DG),Kenya Development Corporation.
- KDC Taps SACCOs,Cooperatives to Unlock Capital for Growing Businesses
SACCOs and cooperatives can become a stronger bridge between development capital and farmers and businesses seeking finance to expand, create jobs and add value to Kenya’s agricultural production.
That opportunity took centre stage in Eldoret as Kenya Development Corporation (KDC) brought together SACCOs, cooperatives, businesses and players across various value chains to explore financing opportunities within the North Rift Economic Bloc (NOREB).
The engagement focused on unlocking investment across key agricultural value chains, including dairy, tea, coffee, maize, wheat, pyrethrum, avocado and livestock, and moving more farmers and enterprises beyond primary production into aggregation, processing, storage, machinery,logistics, technology and markets.
The focus aligns with the Government’s agenda to transform the MSME sector by expanding access to finance, strengthening enterprise capacity, developing markets, upgrading technology and improving competitiveness.
Agriculture and the MSME economy are closely connected through the farmers, cooperatives, aggregators, processors and small businesses that underpin local value chains.
For KDC,SACCOs and cooperatives provide an important route for connecting development finance to the people and enterprises driving these value chains.
Through wholesale financing, capital is reaching MSMEs through financial institutions, while cooperatives and other viable enterprises can access financing directly for establishment,expansion, diversification,working capital and equipment.
This gives enterprises access to a broader mix of financing solutions depending on their stage of growth and investment needs.
“This means finance can reach closer to the farmer seeking to increase production, the dairy cooperative looking to invest in processing, or the entrepreneur who needs machinery or working capital to take a business to the next level,” said Norah Ratemo,Director General (DG),Kenya Development Corporation.
SACCOs and Cooperatives were challenged to translate the economic opportunities within their communities into viable projects for financing.Hon.Philip Chebunet called for the revival and strengthening of the cooperative movement as a powerful vehicle for mobilizing farmers, building enterprises and driving value addition.
“We want to see strong cooperatives that can bring farmers together, build viable enterprises and invest in value addition.
The financing available through KDC provides an opportunity to strengthen these enterprises and in turn, strengthen the cooperative movement.
We therefore encourage our farmers and cooperatives to take up this funding, grow their businesses and build institutions that can create lasting economic opportunities within our communities,” said Hon. Chebunet.
County Governments also have a critical role to play by identifying bankable investments, strengthening enterprises and cooperatives, addressing barriers to investment and connecting viable businesses to development capital.
Chebunet called for stronger collaboration between KDC and county governments to build a pipeline of investable projects across agriculture, manufacturing, value addition and other productive sectors.
KDC Director General Norah Ratemo said the Corporation is keen to widen the regional reach of its financing and bring development capital closer to viable enterprises across the country.
“Already, KES 5.3 billion has been disbursed under the SAFER Project, supporting MSMEs across 45 counties.
Ultimately, the opportunity is about putting capital behind what farmers, entrepreneurs and communities are already producing.
By financing businesses, SACCOs and cooperatives,KDC is seeking to turn productive potential into stronger enterprises, increased local processing, jobs and greater economic value retained within communities
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