With the economy yet to fully recover from economic tremors occasioned by the pandemic, small-scale business owners have a chance to boost their ventures using a loan from Kenya Development Corporation (KDC)
KDC is a development finance institution that provides long-term financing and other financial, investment and business advisory services.
It offers long-term loans to small-scale businesses which may not otherwise get funding from local commercial banks.
On November 2022, KDC went into a partnership with the Kenya National Chamber of Commerce and Industry (KNCCI) to offer Small and medium-sized enterprises (SMEs) loans of between Ksh10 million and Ksh500 million.
The corporation offers four types of funding including; Project Finance, Working Capital, Asset Finance and Energy Efficiency Loan.
Project Finance is offered for enterprises who want to expand, modernize, refurbish or diversify their businesses.
On the other hand, a Working Capital loan is given to existing businesses to finance their daily operations.
Asset Finance helps businesses get loans to acquire assets such as machinery, plant equipment and non-PSV commercial vehicles.
Energy Efficiency loan is strictly reserved for businesses who want to delve into energy conservation projects.
Requirements to apply;
Unlike most commercial loans, KDC does not offer loans to individuals but rather to enterprises.
To apply, make a formal application letter to the facility through www(dot)kdc(dot)go(dot)ke/loan-facilities/
In the application, prove that the company's board has resolved to borrow from KDC and attach all particulars of the company registration details.
You are also required to provide a business plan including financial projections for the duration of the loan.
Companies are also required to attach bank statements for the last 6 months plus copies of all the company's permits.
Lastly, provide proposed security for the loan.
