Government, World Bank-backed SAFER Programme scales up support for small enterprises
Kenya’s push to expand affordable credit for micro, small and medium-sized enterprises (MSMEs) received a major lift on Tuesday after the Kenya Development Corporation (KDC) advanced Ksh 500 million to Githunguri Dairy Cooperative Society (GDC) under the World Bank–funded Supporting Access to Finance for Economic Recovery (SAFER) Programme.
The cheque was presented by Cabinet Secretary for Investments, Trade and Industry Hon. Lee Kinyanjui, who praised Githunguri Dairy for its robust governance, rapid growth, and expanding footprint across Nairobi and Nakuru counties.
“I wish to congratulate GDC for its strong track record in professional management and sound governance. The cooperative is a model worth emulating,” the CS said.
Kinyanjui further revealed that the government is exploring ways to extend KDC’s lending tenure from 7 to 10 years and reduce the interest rate from 9% to 8%, a move aimed at making long-term capital more accessible—especially for investors in capital-intensive industries.
Government Reaffirms Commitment to De-Risking MSMEs
Principal Secretary for Investment Promotion, Mr. Abubakar Hassan Abubakar, underscored the significance of the SAFER Programme in advancing the Bottom-Up Economic Transformation Agenda (BETA).
“The SAFER Programme demonstrates Government’s commitment to de-risking MSME financing. We are empowering farmers and small enterprises to drive inclusive economic growth,” he said.
World Bank Financial Sector Specialist Ms. Leah Kiwara described the partnership as a decisive step in bridging the MSME financing gap.
“Monitoring impact and highlighting success stories will be critical as we work to drive meaningful and sustainable MSME growth,” she added.
KDC Expands National Reach, Thousands of MSMEs Supported
KDC Director General Ms. Norah Ratemo disclosed that the corporation has so far disbursed Ksh 3.2 billion to 11 SACCOs, supporting 36,990 MSMEs, including 12,221 women-owned enterprises, and helping create 25,637 jobs across 32 counties.
An additional Ksh 3.9 billion has been earmarked to onboard 13 more SACCOs through the programme’s digital lending platform—designed to strengthen financial inclusion and widen access to affordable credit.
Githunguri Dairy’s Digital Lending Push Transforming Lives
Githunguri Dairy Cooperative, one of Kenya’s fastest-growing agribusiness cooperatives, has been lauded for its innovation and financial discipline. With nine branches across Nairobi and Nakuru, GDC has become a model of cooperative excellence.
Its Bonyeza Digital Loan product is emerging as a key driver of MSME support, offering quick, accessible, and affordable financing directly via mobile phones.
“The Bonyeza Digital Loan product is transformative—allowing farmers and MSMEs to access financing easily on their phones,” said Mr. Charles Kioko, praising the cooperative’s tech-driven approach.
A Major Boost for Kenya’s Cooperative and MSME Sectors
The injection of Ksh 500 million marks another milestone in Kenya’s efforts to strengthen value chains, support small enterprises, and promote sustainable economic recovery. Through the SAFER Programme, the government and the World Bank are betting on cooperatives—particularly high-performing ones like Githunguri Dairy—to help unlock credit and stimulate grassroots economic growth.
As the programme scales up, thousands more MSMEs nationwide are expected to gain access to financing, creating new jobs and driving Kenya’s transformation agenda forward.
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