Kenya Development Corporation Boosts Dairy Sector with $4.5 Million Loan

The Kenya Development Corporation (KDC) has extended a loan of KSh 500 million to Githunguri Dairy Co-operative Society as part of a World Bank-backed initiative. This program, titled Supporting Access to Finance and Enterprise Recovery, was introduced to assist in the recovery of small businesses affected by the Covid-19 pandemic.

Trade Cabinet Secretary Lee Kinyanjui stated that there are plans to extend the loan period from seven to ten years and to reduce the interest rate from 9% to 8% to make it more accessible to investors, particularly in capital-intensive projects.

Githunguri Dairy, which ranks as the third-largest dairy processor in Kenya, supports a network of over 27,000 small-scale farmers. These farmers supply more than 260,000 liters of milk daily. The credit facility is expected to help them purchase better equipment, expand their livestock, and hire additional workers, providing a buffer against market fluctuations and climate-related challenges.

Leah Kiwara, a financial sector specialist from the World Bank, described the collaboration between KDC and Githunguri Dairy as part of a broader strategy to close the financial gap hindering the growth of small firms across the country. She emphasized the importance of monitoring the impact and showcasing success stories to promote sustainable growth for micro, small, and medium enterprises (MSMEs).