KDC, Partners Drive MSME Growth Through Expanded Financing Programme

Kenya Development Corporation (KDC), in partnership with the World Bank and the National Treasury, has intensified efforts to boost access to finance for Micro, Small and Medium Enterprises (MSMEs) across Kenya through the Supporting Access to Finance and Enterprise Recovery (SAFER) Programme.During a high-level field visit in Githunguri in March 2026, stakeholders highlighted the programme’s growing impact in supporting small businesses, farmers and entrepreneurs.

Since its launch, SAFER has supported over 55,000 MSMEs across 38 counties, helping sustain more than 30,000 jobs. Notably, 36 per cent of beneficiaries are women-owned enterprises, while 35 per cent are youth-led businesses.The programme was established in response to economic disruptions caused by the COVID-19 pandemic, with a focus on strengthening resilience among MSMEs.

It works through regulated financial intermediaries, including commercial banks, microfinance institutions and SACCOs, to extend affordable credit—especially to underserved segments.KDC noted that the initiative aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA), which places MSMEs at the centre of economic growth.

The sector contributes about 40 per cent of Kenya’s Gross Domestic Product and accounts for over 80 per cent of employment, underscoring its critical role in job creation and inclusive development.A key highlight of the visit was engagement with Githunguri Dairy Cooperative Society (GDC) Sacco, one of the programme’s financial intermediaries.

Through a KES 500 million facility extended under SAFER, the Sacco has enabled over 15,000 MSME members to access financing many for the first time. Of these beneficiaries, 24 per cent are women and 28 per cent are youth.KDC Director General Norah Ratemo said the strong uptake of the facility demonstrates both the demand for affordable credit and the effectiveness of leveraging local financial institutions to deliver development finance.

She emphasized that the programme is helping strengthen key sectors of the economy, particularly agricultural value chains.GDC Sacco Chief Executive Officer Charles Kioko highlighted the Sacco’s evolution from a dairy farmers’ cooperative into a broader financial institution serving approximately 79,000 customers.

He noted that innovative financing solutions including digital lending platforms have made credit more accessible, enabling farmers to use insured dairy cows as collateral.The visiting delegation toured the Githunguri Dairy Cooperative processing facility, gaining insights into the integrated dairy value chain, from milk collection to processing and packaging.

MSME beneficiaries shared how improved access to finance has enabled business expansion, increased productivity and improved household incomes.Stakeholders noted that strong partnerships between government institutions, development partners and grassroots financial organizations are key to unlocking opportunities for entrepreneurs and driving inclusive economic growth.

Through initiatives such as SAFER, the Government of Kenya and its partners continue to prioritize financial inclusion and enterprise development, ensuring that development finance reaches the businesses and communities that form the backbone of the country’s economy.