Kenyans benefit as MSMEs tap affordable financing
- Created by Sande Onyango
- MSMEs
Insured dairy cows used as collateral and digital platforms such as Kwamua Digital and Bonyeza are game-changers for MSME owners.
Over 55,000 micro, small, and medium enterprises (MSMEs) across 38 counties have accessed affordable financing under the Supporting Access to Finance and Enterprise Recovery (SAFER) Programme, sustaining more than 30,000 jobs.
Launched by the Kenya Development Corporation (KDC) in partnership with the World Bank and the National Treasury Project Implementation Unit (PIU), the programme targets women and youth-led businesses. So far, 36 percent of beneficiaries are women-owned, while 35 percent are youth-led, highlighting its role in promoting inclusive economic growth.
The SAFER Programme was set up to help MSMEs recover from the economic disruptions caused by the COVID-19 pandemic. It works through regulated financial intermediaries, including banks, microfinance institutions, and SACCOs, to provide affordable credit to underserved businesses.
The initiative supports the Government’s Bottom-Up Economic Transformation Agenda (BETA), which puts MSMEs at the centre of Kenya’s economic growth. These enterprises contribute about 40% of Kenya’s GDP and account for more than 80% of jobs.
A high-level delegation recently visited Githunguri Dairy Cooperative (GDC) Sacco Society Limited to see the programme’s impact firsthand. The team included World Bank Vice President Ms Anke D’Angelo, Kenya Operations Manager Ms Anne Bakilana, SAFER Task Team Lead Ms Leah Kiwara, KDC Chairman Dr Sakwa Bunyasi, KDC Director General Ms Norah Ratemo, and other officials.
GDC Sacco, a Tier I deposit-taking SACCO licensed by SASRA, deployed a KES 500 million facility from KDC to expand lending to MSMEs. More than 15,000 members have accessed financing, many for the first time. Women and youth account for nearly half of the beneficiaries.
“Development finance must translate into real impact by supporting entrepreneurs, strengthening key sectors, and expanding opportunities across counties,” said Ms Norah Ratemo, KDC Director General.
GDC Sacco CEO, Dr Charles Kioko highlighted the cooperative’s growth from a dairy farmers’ SACCO in 2003 to serving about 79,000 members across Kiambu, Nairobi, and Nakuru counties.
“Through innovative financing, like using insured dairy cows as collateral, and digital loan platforms such as Kwamua Digital and Bonyeza, we are enabling MSMEs to access quick, convenient, and affordable credit,” he said.
During the visit, the delegation toured GDC’s dairy processing facility and met MSME beneficiaries. Many shared how access to finance has allowed them to expand businesses, increase productivity, and improve household incomes.
The SAFER Programme shows how partnerships between government institutions, development partners, and local financial institutions can unlock opportunities, strengthen enterprise resilience, and drive inclusive growth.
Through initiatives like SAFER, the Government of Kenya and its partners continue to ensure development finance reaches the businesses and communities that drive the country’s economy.
