The government is ready to inject up to Sh20 billion into concessional financing and investment risk-sharing mechanisms to boost industrial growth, president William Ruto has said.
The president said the government, through the Kenya Development Corporation (KDC), is prepared to support industries with non-commercial credit and equity investments in critical sectors.
In remarks aimed at encouraging greater collaboration between the public and private sectors, he called for deeper engagement between the private sector and government to align with available support structures and explore opportunities for growth.
“This is credit that we are making available that is not commercial – it is concessionary financing to support industry, we can even de-risk some of the investments you want to do by taking a stake, even if it is 20 per cent, and putting in our money,” the president said.
He further noted that apart from resources being mobilised through development partners, the government is also willing to commit its own funds to help scale industrial investments, particularly in areas where investors are hesitant due to high risks or uncertain returns.
“We should be able to do that, especially in the critical sectors where the industry may not be very comfortable. Once the investment is stable and the sector is comfortable, we can work out an exit.”
The proposal includes the possibility of approving Sh10 billion to Sh20 billion for concessional lending through KDC, alongside risk-sharing arrangements to build investor confidence and expand Kenya’s industrial base.