Kenyan Government, on Tuesday, November 29, rolled out a loan facility targeting Small and Medium Enterprises (SMEs).
The program, which was launched on Tuesday, will be managed by the Kenya Development Corporation (KDC) in partnership with Kenya National Chamber of Commerce and Industry (KNCCI).
SMEs interested in the facility will be allowed to apply for loans between Ksh10 million and Ksh500 million.
“The partnership will see over 3,000 SMEs 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,” KDC announced in a statement.
KNCCI President Richard Ngatia welcomed the move noting that it complimented Kenya Kwanza economic agenda and Hustler Fund which will be rolled out on Thursday, November 30, 2022.
“We will particularly give priority to SMEs in manufacturing industry as it aligns with the government’s economic model,” Ngatia explained.
KDC Acting Director General Christopher Huka revealed that the loan facility had been created because many Kenyan companies had taken a hit in the last two years.
“We are excited to work with KNCCI on this historic transaction.
“We strongly believe that the financial facilities provided by KDC will serve as a catalyst to the sustainable development of SMEs,” Huka announced.
Companies and small business who want the loan will have to apply for the funds through the KDC website.
Users can log onto the application portal by visiting; portal(dot)kdc(dot)go(dot)ke.
The applicants will then be prompted to provide the following: company registration number, company name, PIN number, VAT registration number, phone number, email address, postal address and physical location.
The facility was a boost to Kenyan businesses after Parliament, on November 9, 2022, sought to empower Jua Kali artisans by passing a motion allowing them to access funding through the Constituency Development Fund (CDF).