Small traders to access cheap loans of up to Sh500m from KDC

Business
By Macharia Kamau | Nov 30, 2022
From left, KDC Director Norah Ratemo, KNCCI president Fred Ngatia and KDC Deputy-Director Kennedy Wanderi. [Wilberforce Okwiri, Standard]

Small and medium-sized enterprises will now access cheap long-term loans thanks to a deal between the Kenya Development Corporation (KDC) and the Kenya National Chamber of Commerce and Industry (KNCCI).

The deal, which was announced yesterday, formalises interactions between the two agencies and will see SMEs get loans of between Sh10 million and Sh500 million.

The partnership will see over 3,000 KNCCI members - largely SMEs as well as large enterprises - access financing from KDC at affordable rates, thus enabling them to better manage the credit shocks and risks as they recover and grow their businesses.

KDC acting Director General Christopher Huka said the engagement will catalyse enterprises to recover from multiple shocks that have hit businesses in the past three years.

Businesses have been hit by the impact of the Covid-19 pandemic, Russia's invasion of Ukraine and low productivity in agriculture arising from climate change.

"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," he said.

KDC, a State-run development finance institution, was formed in late 2020 to merge the operations of Industrial and Commercial Development Corporation, Tourism Finance Corporation and IDB Capital.

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