The Kenya Development Corporation (KDC) and the Kenya National Chamber of Commerce and Industry (KNCCI) have today announced a new cooperation agreement 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 loan facilities of between Kshs. 10 million up to Kshs. 500Million.
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.
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Speaking during the SME business forum, 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 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.
“I wish to emphasize 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
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.
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 better positioned 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 intervenes 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 commercialization of innovations; provision of development support services; provision of linkages to markets; knowledge sharing through advisory and improving the business and investment climate.