KDC unveils Ksh2Bn SME Credit Program with India’s EXIM Bank

• KDC Launches Ksh 2 Billion SME Credit Program with India’s EXIM Bank

The Kenya Development Corporation – KDC_KE has launched a Sh2 billion credit support program for Small and Medium Enterprises in partnership with India’s Export-Import Bank. This initiative aims to empower Kenyan businesses by offering favorable financial terms for acquiring technology and equipment, thus enhancing industrial modernization and competitiveness.

KDC has previously lent Ksh 3.5 billion to businesses since 2021, and the new funding is expected to boost financial inclusion and economic growth. The interest rates for this program are in single digits, significantly lower than those offered by Kenyan banks.

Additionally, KDC has partnered with the World Bank to set aside Sh7.1 billion for lending to SMEs. The corporation is also collaborating with the Kenya National Chamber of Commerce and Industry to enhance private sector development through soft loan facilities.

These initiatives demonstrate the government’s commitment to supporting SMEs, which play a crucial role in Kenya’s economy. By providing access to affordable credit and facilitating technology transfer, these programs aim to boost productivity, create jobs, and drive sustainable economic growth.

In December 2023,Kenya Development Corporation(KDC) and United Green signed an MOU to develop an advanced US$275 Million climate smart agri-food systems investment Kenya has eceived a major boost following the signing of a national flagship climate smart agri-food investment programme in partnership with UK-based company, United Green Group (UG).

The resultant partnership will deliver agri-fin-tech services for rural communities, high productivity climate-smart farming and state-of-the-art agro-processing facilities, creating new markets for at least 100,000 rural households over the next five years. The investment in partnership with Kenya Development Corporation (KDC), will adopt a rigorous development approach in the agri-food sector, which seeks to improve food security for Kenya and the region.