Access to finance programme boosts MSME growth and job creation
GDC CEO Dr. Charles Kioko in conversation with KDC Director General Norah Ratemo at the WorldBank-KDC visit at GDC Sacco Headquarters
Thousands of micro, small and medium enterprises (MSMEs) across Kenya are benefiting from improved access to affordable credit through a programme aimed at strengthening business recovery and supporting inclusive economic growth.
The Supporting Access to Finance and Enterprise Recovery (SAFER) Programme, implemented by Kenya Development Corporation in partnership with the World Bank and the National Treasury of Kenya, is expanding financing opportunities for small businesses across the country.
The initiative was established to support MSMEs recover from the economic disruptions caused by the COVID-19 pandemic while strengthening long-term access to finance. According to programme partners, more than 55,000 MSMEs across 38 counties have already accessed financing, helping sustain over 30,000 jobs nationwide.
Women and youth entrepreneurs have also benefited significantly from the programme, with 36 percent of supported businesses owned by women and 35 percent led by youth.
MSMEs remain a key pillar of Kenya’s economy, contributing about 40 percent of the country’s Gross Domestic Product and accounting for more than 80 percent of employment, making improved access to finance critical for business growth and job creation.
Stakeholders recently visited Githunguri Dairy Cooperative Sacco Society Limited in Githunguri to assess how the programme is helping small businesses, farmers and entrepreneurs access credit and expand their enterprises.
The visit brought together senior officials from the World Bank and the Kenya Development Corporation, including KDC Director General Norah Ratemo, who highlighted the importance of ensuring development finance delivers tangible benefits to businesses.
Speaking during the visit, Ratemo said the programme is designed to strengthen entrepreneurship and expand economic opportunities across the country.
“At KDC, our focus is to ensure that development finance translates into real impact by supporting entrepreneurs, strengthening key sectors of the economy, reinforcing agricultural value chains and expanding economic opportunities across counties,” she said.
Through the programme, Kenya Development Corporation provided a KES 500 million facility to the Sacco to expand lending to MSMEs through both digital and conventional lending platforms.
The financing has enabled more than 15,000 MSME members to access credit, many of them for the first time, allowing businesses to expand operations and improve productivity.
Chief Executive Officer Charles Kioko said the cooperative has continued to grow since its establishment in 2003, when it began as a dairy farmers’ Sacco before expanding to serve the wider community.
Kioko said the Sacco currently serves about 79,000 customers and continues to introduce innovative financing solutions to support farmers and small businesses.
He noted that the cooperative has also invested in digital lending platforms, including mobile-based loan products that allow members to access quick and convenient credit.
Stakeholders said such partnerships between government institutions, development partners and cooperative financial institutions are helping strengthen enterprise resilience and expand economic opportunities for entrepreneurs across Kenya.
