Kenya Development Corporation (KDC) has launched a Sh2 billion credit support for support Small and Medium Enterprises (SMEs) through India's Export-Import Bank.
It is designed to empower Kenyan businesses through favourable financial terms for acquiring technology, machinery, and equipment from India.
This is aimed at accelerating Kenya’s industrial modernisation, enhancing competitiveness, and creating sustainable economic growth.
''The terms are extremely friendly with the interest rates at single digit figures, which is half the prevailing commercial rates in Kenyan banks,” said Kennedy Wanderi, Ag director of Corporate Services at KDC.
Hassan Abubakar, Principal Secretary of the State Department for Investment Promotion said tKenya is committed to fostering investment and technological transfer through strategic partnerships.
“Embracing this facility offers numerous benefits. Acquiring advanced technology will significantly boost productivity and competitiveness within our industries,'' Abubakar said.
This, in turn, he said would create jobs and enhance skill development.
The meeting brought together representatives from the High Commission of India, the Export-Import Bank of India, GOMA Oversees PVT Ltd, the Kenya Association of Manufacturers (KAM), the Kenya Dairy Board, and other key industry players.
During the meeting, the government promised to ensure timely approval of tax exemptions and provide the necessary support for the seamless implementation of the LOC facility.
KDC has lent Sh3. 5 billion to businesses since 2021, pushing its active loan book to Sh7 billion, including those inherited from the three merged DFIs amid efforts to cut defaults.
