Government launches loan scheme to boost businesses
In a June 3 announcement, KDC explained that the SAFER initiative aims to facilitate increased lending to MSMEs in the aftermath of the COVID-19 pandemic and beyond, helping to drive the recovery and expansion of these businesses.
The Kenya Development Corporation Limited (KDC) is looking to collaborate with licensed financial institutions to provide support to viable Micro, Small, and Medium Enterprises (MSMEs) through the Supporting Access to Finance and Enterprise Recovery Project (SAFER fund).
In a June 3 announcement, KDC explained that the SAFER initiative aims to facilitate increased lending to MSMEs in the aftermath of the COVID-19 pandemic and beyond, helping to drive the recovery and expansion of these businesses.
The Corporation has opened loan applications to eligible institutions, including Licensed Micro Finance Institutions (MFIs), Licensed Commercial Banks, Licensed Deposit Taking Saccos, and Licensed Non-withdrawable Deposit Taking Saccos, inviting them to apply for the SAFER fund.
All applicants are required to adhere strictly to the terms and conditions set forth by the Kenya Deposit Corporation (KDC).
Interested partners should follow these steps to apply through the KDC portal:
Login to the Kenya Development Corporation website at https://kdc.go.ke/
Interested partners should click on the SAFER Portal, download the mandatory requirements form for reference and compliance, accept the terms and conditions to meet the Non-Disclosure Agreement requirement, create an account, fill in the required details, attach the necessary documents as indicated in the application tabs, and submit.
All attachments must be in PDF format.
KDC stated that all applicants must disclose their proposed on-lending margin.
Additionally, they must have a digital lending platform for fund application and disbursement.
Applicants are required to have an existing MSME portfolio and demonstrate the capacity to serve MSMEs, the primary beneficiaries.
According to KDC, all loan applications must be submitted online via the SAFER Portal, with no hard copies accepted.
The online application window will be open for 14 working days starting Wednesday, June 4, 2025.
In 2024, KDC injected Ksh7.1 billion through the SAFER initiative to support MSMEs nationwide.
The corporation planned to provide loans between Sh10 million and Sh500 million to each participating financial institution for onward lending.
Individual microenterprises could access loans from Sh7,000 to Sh150,000, while small enterprises were eligible for loans ranging from Sh150,001 to Sh250,000.
These funds aimed to help MSMEs tackle immediate challenges and capitalize on growth opportunities.
The financing is routed from the National Treasury to KDC, which then on-lends to various Participating Financial Institutions (PFIs).
