By Shadrack Nyakoe
The Kenya Development Corporation (KDC) and the Kenya National Chamber of Commerce and Industry (KNCCI) have entered into a strategic partnership to accelerate the provision of credit to Small and mid-size enterprises (SMEs).
The partnership opens up an avenue for KNCCI members to have access to relevant and tailored products and services to grow their businesses; whilst for KDC the MoU gives the Corporation access to potential customers for uptake of its products.
The partnership will see the over 3,000 KNCCI members enjoy diverse financial and advisory solutions to help them recover from the economic downturn occasioned by the Covid-19 pandemic and to spur business growth.
Speaking during the signing of the Memorandum of Understanding in Nairobi, KDC Director-General Christopher Huka said the partnership will enable Small, Medium-sized and large enterprises greater access to much-needed financing, helping them to improve their enterprises while contributing to the country’s recovery from the adverse impact of the pandemic and the challenges brought about by the Russia Ukraine war.
“We are excited about this partnership with the Kenya National Chambers of Commerce & Industry, it enables us to open a path to reach more entrepreneurs with needed financial solutions for business growth. Our financial offering combining credit, joint ventures, strategic partnerships and business advisory services is an excellent match for the requirements of the market as the country emerges from the pandemic,” Mr Huka said.
Beyond credit, members of the KNCCI will also enjoy non-financial solutions, including advisory and networking opportunities. On his part, KNCCI President Richard Ngatia noted that the partnership with KDC will see the two institutions synergize to support the development of financial solutions that will address the needs of Kenyan businesses and entrepreneurs.
“We look forward to working with KDC to unlock alternative financing options for our members across the country. We believe there are compelling opportunities in the diverse financing options offered and we are keen on building longstanding relationships with the country’s leading DFI who share a common vision and will enable our members to achieve their business goals,” Mr. Ngatia noted.
In a move set to promote capacity building in the private sector, the partnership will include access to opportunities and information sharing between the two entities.
Since its formal launch in December 2021, KDC has partnered with the private sector in providing financing solutions for the economy’s critical development challenges, including the COVID-19 pandemic. And as the economy begins to recover from the adverse impacts of the pandemic, KDC is better positioned to support private-sector businesses, reduce barriers to private investment, and increase support to enterprises while exploring strategic partnerships.
KDC primarily focuses on the following sectors: manufacturing, tourism, healthcare, energy, blue economy, climate change, post-harvest management and ICT and also intervene in the other sectors of the economy.
KDC was established with the mandate to promote sustainable economic development by undertaking the following functions; Provision of development finance; facilitating the set-up of business-related infrastructure including ICT; development and commercialization of innovations; provision of development support services; provision of linkages to markets; knowledge sharing through advisory and improving the business and investment climate.