The Kenya Development Corporation (KDC) and the Kenya National Chamber of Commerce and Industry (KNCCI) have inked a deal to provide long-term loan facilities of between Ksh10 million up to Ksh500 million.
The partnership will see over 3,000 KNCCI members—largely SMEs and large enterprises—access financing from KDC at an affordable rate thus enabling these enterprises to better manage the credit shocks and risks as they recover and grow their businesses.
Speaking during the SME business forum, KDC Acting Director General Christopher Huka said the engagement will catalyse enterprises to recover from multiple shocks that have hit businesses in the past three years including the lasting impacts of the Covid-19 pandemic, war in Ukraine and low productivity in agriculture arising from climate change.
“We are excited to work with the Chambers of Commerce on this historic transaction, as we strongly believe that the financial facilities provided by KDC will serve as a catalyst to the sustainable development of commerce and industrial enterprises in the country through provision of critical financial interventions to SMEs and accelerate economic recovery,” Mr. Huka said.
In June 2022, KDC and KNCCI entered into a strategic partnership to accelerate the provision of credit to Small and mid-size enterprises (SMEs). Today’s engagement progresses the MoU whilst opening up the partnership to enable local enterprises to access the much-needed long-term financing.
KNCCI President Richard Ngatia said the partnership is a strategic opportunity for businesses to acquire key information on products available, investment opportunities and the know-how on harnessing the financing opportunities availed to create more wealth and grow their businesses.
In a move set to promote capacity building in the private sector, the partnership will include access to opportunities and information sharing between KDC and KNCCI.