The National Treasury, in partnership with the Kenya Development Corporation (KDC), has released Sh2.625 billion to Micro, Small and Medium Enterprises (MSMEs) in the past year under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project.
The five-year programme, funded at Sh7.1 billion ($55 million), was created to plug financing gaps in the MSME sector that deepened during the COVID-19 pandemic.
KDC says the project has reached 36,990 beneficiaries across 32 counties in the first year, providing a boost to business recovery and resilience.
“Of these, 12,221 are women, with 28.8 percent of loans extended to women-owned enterprises,” read a statement by KDC in part. “About 9.7 per cent of the total financing has gone into green economy and climate-smart projects.”The funding is being channelled through participating financial institutions (PFIs), which are also receiving technical support to improve operations and risk management.
The SAFER Project is embedding Environmental, Social, and Governance (ESG) principles into lending practices, requiring PFIs to conduct environmental and social risk assessments before extending credit.
Officials say this approach will not only aid post-pandemic recovery but also align MSMEs with sustainable growth models.
The initiative is also preparing to absorb the planned Digital Lending Window, aimed at widening access to affordable credit, particularly for underserved entrepreneurs.
By leveraging digital channels, the programme seeks to increase financial inclusion and accelerate access to capital.
Kenya’s MSME sector, which contributes more than a third of GDP and accounts for the bulk of private-sector jobs, has long struggled with access to affordable finance.
The Treasury views the SAFER Project as a key driver of economic transformation, combining recovery efforts with climate-friendly and inclusive investment strategies.
