SMEs to access Kes500 million in long-term loans to aid recovery
An estimated 3,000 small-scale businesses that are members of the Kenya National Chamber of Commerce and Industry (KNCCI) are set to access loans of between Kes10 million and Kes500 million to help them recover from multiple economic shocks.
The move follows the signing of a partnership between the Kenya Development Corporation (KDC) and the Kenya National Chamber of Commerce and Industry (KNCCI) to foster financial access to enterprises in the inaugural SME breakfast meeting since their MoU signing in June 2022.
The agreement formalizes the mutual interaction and strengthens the existing relationship between KDC and KNCCI at the strategic and working level and will see enterprises access long-term loans.
KDC Acting Director-General Christopher Huka said the engagement will catalyze enterprises to recover from multiple shocks that have hit businesses in the past three years including the lasting impacts of the Covid-19 pandemic, the war in Ukraine, and low productivity in agriculture arising from adverse effects of 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 partnered to accelerate the provision of credit to SMEs.
“I wish to emphasize on the importance of this event as 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,” KNCCI President Richard Ngatia said.
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The partnership will also encompass access to business opportunities and information-sharing forums between KDC and KNCCI members.
Since its formal launch in December 2021, KDC has partnered with the private sector in providing financing solutions for the economy’s critical development challenges, including the COVID-19 pandemic.
As the economy begins to recover from the adverse impacts of the pandemic, KDC is positioning itself to support private-sector businesses, reduce barriers to private investment, and increase support to enterprises while exploring strategic partnerships.
KDC primarily focuses on the following sectors: manufacturing, tourism, healthcare, energy, blue economy, climate change, post-harvest management, and ICT, and also intervene in the other sectors of the economy.
KDC was established with the mandate to promote sustainable economic development by undertaking the following functions; Provision of development finance; facilitating the set-up of business-related infrastructure including ICT; development and commercialisation of innovations; provision of development support services; provision of linkages to markets; knowledge sharing through advisory and improving the business and investment climate.