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.
As at 31st March 2026, a total of KES 6,350 Billion has been disbursed to the KDC and a draw down of 3,967 billion done to fifteen (15) Saccos.
The fifteen (15) Saccos have since disbursed KES 3,145 Billion to an estimated 72, 618 MSMEs with 36,807 being direct loanees and the rest through Co-operatives and Self Help Groups. The Project has reached forty two (42) out of the forty seven (47) Counties within 12 sectors in the economy.
Component Two
The following progress has been achieved towards the establishment of the Kenya Credit Guarantee Company (KCGC):
- Public participation for amendment of the CBK Act held from 29th April-3rd May 2024
- The Amendments to the CBK Act made under the Business Laws & passed by the President on 27th December 2024.
- The Cabinet Memo approving establishment of the KCGC signed on 21st January 2025.
- Finalizing of the following; (i) KCGC Strategic plan and Operational Manuals, Business model, Governance Structure, and Articles of Association.
- CBK has finalized public participation of amendments to the CBK Act (Credit Guarantee regulations
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