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KDC, World Bank Deepen MSME Financing to Spur Growth and Jobs

GDC CEO Dr. Charles Kioko in conversation with KDC Director General Norah Ratemo at the WorldBank-KDC visit at GDC Sacco Headquarters


Thousands of small businesses across Kenya are gaining renewed momentum as the Kenya Development Corporation (KDC), in partnership with the World Bank, expands access to affordable credit under a programme targeting enterprise recovery, job creation and inclusive economic growth.


The Supporting Access to Finance and Enterprise Recovery (SAFER) Programme is designed to unlock financing for micro, small and medium enterprises (MSMEs), a critical sector that continues to face barriers in accessing affordable credit despite its central role in the economy.


So far, the initiative has supported over 55,000 businesses across 38 counties, helping sustain more than 30,000 jobs. The programme also prioritises inclusivity, with women-owned enterprises accounting for 36 per cent of beneficiaries, while youth-led businesses make up 35 per cent.


MSMEs contribute about 40 per cent of Kenya’s Gross Domestic Product and provide over 80 per cent of employment, making them a key driver of economic growth and livelihoods.


The SAFER programme was introduced to cushion businesses from the economic effects of the COVID-19 pandemic and to accelerate recovery by channeling funds through banks, microfinance institutions and savings and credit cooperative organisations (SACCOs).


In Kiambu County, the programme has been scaled up through a Sh500 million financing facility extended by KDC to Githunguri Dairy Cooperative (GDC) Sacco. The funding has enabled more than 15,000 members to access loans, with many benefiting from formal credit for the first time.


Speaking on the initiative, KDC Director General Norah Ratemo said the focus is on ensuring development financing delivers tangible impact at the grassroots.


“Development finance must translate into real impact by strengthening key sectors and expanding opportunities across counties,” she said.


The funding has particularly boosted enterprises within the dairy value chain, enabling farmers and small business owners to expand operations, improve productivity and increase incomes.


GDC Sacco Chief Executive Officer Dr Charles Kioko said the institution has grown steadily since its establishment in 2003 and now serves about 79,000 customers.


He noted that the Sacco has adopted innovative financing models, including allowing members to use insured dairy cows as collateral, widening access to credit among farmers.


“We have embraced innovative solutions that enable our members to leverage their assets to access financing and grow their businesses,” he said.


In addition, the Sacco has integrated digital lending platforms such as Kwama Digital and Bonyeza loans, allowing members to access quick and affordable credit through mobile technology.


Stakeholders say the partnership between KDC, the World Bank and local financial institutions highlights the role of collaboration in enhancing financial inclusion and strengthening grassroots enterprises.


The initiative aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA), which prioritises MSMEs as a cornerstone of economic transformation.


With increased access to financing, small businesses are expected to scale up operations, create employment and contribute significantly to Kenya’s long-term economic resilience.


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