Kenya Development Corporation Allocates Sh500 Million to Githunguri Dairy Cooperative

The Kenya Development Corporation (KDC) has infused Sh500 million into the Githunguri Dairy Cooperative Society (GDC) to bolster the financing available for micro, small, and medium enterprises (MSMEs). This financial support is part of a broader strategy to enhance access to long-term credit for investors, particularly in capital-intensive ventures.

Trade and Investment Cabinet Secretary, Lee Kinyanjui, stated that the corporation is exploring strategies to make financing more affordable and flexible by extending the lending period from seven to ten years and reducing the interest rate from 9% to 8%. The funding is distributed under the World Bank-supported Supporting Access to Finance for Economic Recovery (SAFER) Programme, which seeks to empower MSMEs by improving credit access and supporting innovation.

KDC Director General Norah Ratemo noted that the corporation has already disbursed Sh3.2 billion to 11 Savings and Credit Cooperative Organizations (SACCOs) for onward lending, aiding 36,990 MSMEs, including 12,221 women-owned enterprises, and creating 25,637 jobs across 32 counties. Furthermore, Sh3.9 billion has been designated for enrolling 13 additional SACCOs under the digital lending window of the programme, expanding its outreach and enhancing financial inclusion in Kenya.

Leah Kiwara, a Financial Sector Specialist at the World Bank, highlighted the partnership's role in bridging the financing gap that limits MSME growth, emphasizing the importance of monitoring the impact and sharing success stories to drive sustainable growth.

Githunguri Dairy Cooperative has shown rapid growth, now operating nine branches across Nairobi and Nakuru counties.