How easy access to financial inclusion is driving business growth in Kiambu

Kenya’s micro, small and medium enterprises (MSMEs) are the backbone of the economy, driving innovation, creating jobs and sustaining livelihoods across the country.

However, one of the main challenges they face is limited access to the capital needed to grow and expand their businesses.

Take, for instance, Purity Macharia, who manages a small shop selling food items in the Kwamaiko area of Githunguri Sub-County, Kiambu County.

Since 2013, she had not expanded her shop due to a lack of access to capital, which caused her business to stagnate. During this period, supporting her family was also difficult, as she relied entirely on the shop’s proceeds.

“The little profit I was making was used to pay household bills, such as buying food, clothes and covering school fees for my three children. Since it was a small business, it was not easy to grow,” she says.

However, this changed when she was introduced to the Supporting Access to Finance and Enterprise Recovery (SAFER) Programme, implemented by the Kenya Development Corporation (KDC) in partnership with the World Bank and the National Treasury Project Implementation Unit (PIU).

The SAFER Programme was established to support the recovery and resilience of MSMEs following the economic disruptions caused by the COVID-19 pandemic in Kenya, thereby fostering post-pandemic recovery and long-term growth.

Purity explains that in 2025, she took an initial loan of Sh30,000 from Githunguri Dairy Cooperative (GDC) Sacco Society Limited, which she invested in expanding her business. She increased her stock of foodstuffs, including rice from Mwea, which she had not stocked before.

She also boosted the float for her M-Pesa business and used the remaining amount to buy fertiliser for her tea farm.

After repaying the first loan, Purity took a second loan of Sh30,000 in January this year. She says the expansion has already yielded results.

“In a day, I now sell more foodstuffs, transact more money through M-Pesa, and my tea farm has also started generating income. In fact, I even employed a farmhand to take care of the tea farm, as I became busier with the shop,” she says.

Although the mother of three now earns a higher income that allows her to pay her bills with ease, she is focused on securing additional financing. She plans to invest in banking agent services, as more clients are increasingly inquiring about them, and to expand into poultry farming.

KDC Director General, Norah Ratemo, says the programme works through regulated financial intermediaries, including commercial banks, microfinance institutions and Saccos, to extend affordable credit to MSMEs, particularly those operating in underserved segments of the economy.

They have extended a facility of Sh500 million, which has benefited over 10,000 MSMEs within the dairy value chain, including farmers and small dairy businesses in Kiambu. They are accessing affordable financing to sustain and grow their enterprises.

Additionally, they have supported more than 11,000 youth and women through various Saccos and cooperatives.

“We are already seeing the impact: growth in businesses, increased membership support, and stronger enterprises. This is the true essence of the SAFER program,” Norah says.

Patrick Kung’u, a dairy farmer, started dairy farming 10 years ago with two cows. Over time, he has grown his herd to 20 cows, milking between 120 and 200 litres daily depending on the number of lactating animals. He supplies the milk to the cooperative society at Sh49 per litre.

He says the loan came in handy at a time when the lorry used for farm transport had mechanical problems. He took a loan of Sh100,000, which he used to repair the lorry and increase his stock of feeds.

“I buy feeds in tonnes, so when the money came, I was facing a shortage. With the funds, I bought more and now have enough stock,” he says.

He reveals that feeds are costly, he took the second loan worth Sh90,000 and invested in purchasing more feeds.

Kung’u believes the loan limits should be increased to over Sh1million to allow for greater expansion.

The programme has supported over 55,000 MSMEs across 38 counties to access financing, sustaining more than 30,000 jobs.

Notably, 36 per cent of the beneficiaries are women-owned enterprises, while 35 per cent are youth-led businesses, underscoring the programme’s critical role in advancing financial inclusion and inclusive economic growth.

Through GDC Sacco, members can access loans for working capital, including financing for digital phones. Loan amounts range from Sh1,500 to Sh100,000.

Digital financing

GDC Sacco Chief Executive Officer, Dr Charles Kioko, explained that the Sacco has made significant investments in digital lending solutions, including the Kwamua Digital and Bonyeza loan products. These platforms enable members to access quick, convenient, and affordable credit through mobile services.

Entrepreneurs have praised the digital financing solutions, noting that they have made a substantial difference in their businesses and livelihoods.

Kung’u shared his experience, saying, “Unlike in the past, when one had to queue at financial institutions for hours before securing a loan, the process has now been simplified. I can access funds from the comfort of my home, receive the money via M-Pesa, and use it as needed, to buy feeds, support my family, pay school fees, and assist others in need.”

Norah says this programme aligns with the Government’s Bottom-Up Economic Transformation Agenda (BETA), which places MSMEs at the centre of Kenya’s economic transformation.

MSMEs contribute approximately 40 per cent of Kenya’s GDP and account for over 80 per cent of employment, making them a vital pillar in driving inclusive growth and job creation.

“The growing adoption of digital lending solutions is further enhancing efficiency by reducing turnaround times and expanding access to credit, enabling entrepreneurs to scale their businesses and improve resilience,” Norah explains.

Doris Kamau started her dairy farming journey in 2018 with a single calf she had purchased for Sh55,000. For a long time, she struggled with the high cost of feeds, often spending significant amounts of money to sustain her livestock.

However, after taking a Kwamua loan worth Sh12,000, she invested in yellow maize seeds and began planting maize for silage. “Today, my cows have enough feed. I no longer worry about where to get it. I harvest and store it for future use,” she says.

She now owns seven cows, four of which are lactating, producing a total of 45 litres of milk daily. She sells the milk to a dairy processor at Sh49 per litre.

With a steady supply of feed, Doris plans to expand her herd to 15 cows over the next two years, a move she believes will significantly increase her earnings. At any given time, she employs three to four farmhands who assist with managing the dairy farm.

Dr Kioko highlighted Sacco’s evolution and its strong roots within the agricultural economy.

“GDC Sacco started 22 years ago in 2003 as a dairy farmers’ Sacco before expanding its membership to the wider community and extending its reach to other counties. Today, we serve approximately 79,000 customers and continue to support farmers through innovative financing solutions such as allowing insured dairy cows to be used as collateral,” he says.

Dr Kioko adds, “For us, success is measured by the social transformation of our members. Our vision is centred on socio-economic change, where improvements in people’s lives are clearly visible over time.”

He explains that they aim to see a meaningful shift in how members live compared to the past. Looking ahead, they envision future generations that are more progressive than the current one, with better access to education and improved nutrition.

Leah Kawira, Senior Financial Sector Specialist, World Bank Group, East African Region, says the main goal and objective of SEFA is to increase access to finance for these MSMEs.

The programme also provides financial literacy training to MSMEs and the institutions that support them, helping to build capacity and create more jobs.