The Kenya Development Corporation (KDC) has launched a Sh2 billion credit support initiative for Small and Medium Enterprises (SMEs) in partnership with India’s Export-Import Bank. This program aims to empower Kenyan businesses by providing favorable financial terms for acquiring technology, machinery, and equipment from India.
The initiative is intended to accelerate Kenya’s industrial modernization, enhance competitiveness, and promote sustainable economic growth.
“The terms are extremely favorable, with interest rates at single-digit figures, which is half the prevailing commercial rates offered by Kenyan banks,” stated Kennedy Wanderi, Acting Director of Corporate Services at KDC.
Hassan Abubakar, Principal Secretary of the State Department for Investment Promotion, emphasized Kenya’s commitment to fostering investment and technological transfer through strategic partnerships. “Utilizing this facility offers numerous advantages. Acquiring advanced technology will significantly enhance productivity and competitiveness in our industries,” Abubakar noted, adding that this will create jobs and improve skill development.
The meeting brought together representatives from the High Commission of India, the Export-Import Bank of India, GOMA Overseas PVT Ltd, the Kenya Association of Manufacturers (KAM), the Kenya Dairy Board, and other key industry stakeholders.
During the gathering, the government assured attendees of timely approval of tax exemptions and support for the smooth implementation of the Line of Credit (LOC) facility.
Since 2021, KDC has provided Sh3.5 billion in loans to businesses, increasing its active loan portfolio to Sh7 billion, which includes loans inherited from the three merged Development Finance Institutions (DFIs) as part of efforts to reduce defaults.
