Implementation Status
Component One:
The National Treasury signed a Subsidiary Loan Agreement with the Kenya Development Corporation (KDC) a (government owned entity) on 20th February 2024 of EUR 7 Million and an additional addendum of 40.245 Million Euros signed on 31st October 2024. A total of KES 1,650 Billion has been disbursed to the KDC and a draw down of 1,550 billion done to five (5) Saccos in six counties within 15 sectors in the economy. An additional five Saccos have been cleared and awaiting draw down from KDC. The process of appraising the Saccos and MFBs is still ongoing.
Component Two
The following progress has been achieved towards the establishment of the Kenya Credit Guarantee Company (KCGC): Amendments to the CBK Act were considered by parliament under the Business Amendment Laws and are awaiting presidential accent.
Component Three
(i) The project is supporting policy review and formulation through providing technical assistance to financial sector regulators such as (i) the Central Bank of Kenya in the review of Digital Payments Consumer Protection Framework and Legal Drafting of the National Payment System (NPS) Act, 2011 & NPS Regulations, 2014 (ii) the Sacco Societies’ Regulatory Authority (SASRA) in review of the legal and regulatory framework for the shared services liquidity platform (CLF) & Deposit Guarantee Fund (DGF)
(ii) The project is also building resilience within the financial sector by strengthening regulatory institutions (i) support establishment and capitalization of the Kenya Credit Guarantee Company (KCGC) through transactional advisory support, (ii) support to the National Entrepreneur’s Trust (KNEST) by providing support in governance & legal matters in the informal sector pension scheme, formulation of a strategic plan in addition to supporting the launch, Communication Strategy and Public Awareness campaign for the KNEST,
(iii) support to Sacco Societies Regulatory Authority (SASRA) on project implementation of the digital shared services system (iv) to the Micro Small & Medium Enterprises Authority (MSEA) in the Scoping of the MSMEs ICT Registration System and Back Office Automation and (v) support to State Department for MSMEs Development in conducting a comprehensive survey of MSMEs in Kenya