President William Ruto /FILE
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.
Speaking
during a round table session with the private sector in Nairobi, Ruto said his
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 growth opportunities.
“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 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.
The head of
state praised the private sector for its indispensable and facilitative role in
delivering public goods and services.
“One such
example is the Affordable Housing Programme, a flagship initiative that is transforming
lives and reshaping our urban landscape. It has already created over 320,000
jobs across the building and construction value chain,’’ Ruto said.
He said that
his government has ring-fenced Sh11 billion for the Jua Kali sector to
manufacture key housing components from doors, windows and hinges to fittings –
stimulating grassroots enterprise, strengthening livelihoods, and anchoring economic
growth in the communities that need it most.
He added
that the private sector anchors core value chains, including agriculture, which
employs over 40 per cent of Kenyans, ICT and financial services, in which Kenya
leads in innovation, and tourism, where accommodation and food services grew by
26.6 per cent in Quarter 2 of 2024; a powerful indicator of economic rebound.
He praised
the recovery and growth of the country’s economy, with the shilling having stabilised
at Sh129 to the US dollar for over a year.
“Foreign
exchange reserves have grown from $6.5 billion to $11.8 billion, equivalent to
five months of import cover, while the Nairobi Securities Exchange (NSE), a key
barometer of economic confidence and investor sentiment, has recorded a robust recovery.”
Market capitalisation
now stands at Sh2.5 trillion, reflecting renewed investor optimism and policy consistency.
Although several
bodies have criticized the Hustler Fund, Ruto said he takes pride in the
initiative, saying that it has improved financial inclusivity.
He said that in just under three years, it has disbursed over Sh72 billion to 26 million Kenyans, mobilised over Sh5 billion in savings, and provided vital working capital to millions of micro-entrepreneurs, proving that even the smallest businesses can thrive with the right support.
