Kenya’s push to widen access to affordable credit for small businesses has gained momentum after the Kenya Development Corporation opened applications for the SAFER Fund, a financing programme designed to strengthen lending to micro, small and medium enterprises across the country through regulated financial institutions.
Backed by the World Bank, the programme targets SACCOs, microfinance banks, and smaller commercial lenders as part of broader efforts to support business recovery and growth following economic shocks, including the impact of the COVID-19 pandemic.
In its notice issued on Tuesday, Kenya Development Corporation said it “seeks to partner with regulated financial institutions to support viable MSMEs through the SAFER Fund,” adding that the programme is aimed at expanding credit access for small businesses facing challenges in securing affordable financing.
The SAFER Fund, short for Supporting Access to Finance and Enterprise Recovery Fund, is a government-backed initiative implemented through Kenya Development Corporation with support from the World Bank. It is designed to improve access to finance for micro, small and medium enterprises, which remain central to employment creation and economic activity in Kenya.
Under the model, Kenya Development Corporation will channel funds to Participating Financial Institutions, which will then on-lend to eligible MSMEs. This structure is intended to expand lending reach, particularly to businesses that are often excluded from formal credit systems.
Eligible institutions include SACCOs regulated by the SACCO Societies Regulatory Authority, microfinance banks supervised by the Central Bank of Kenya, and Tier III commercial banks with a focus on MSME lending.
The corporation said the programme prioritises businesses affected by the COVID-19 economic downturn, as well as those seeking to grow during the recovery period. It is also aimed at addressing long-standing financing gaps that continue to limit small business expansion.
“The objective of the Fund is to unlock lending to MSMEs post the COVID-19 crisis and beyond to support recovery and growth of the enterprises,” KDC said in its notice.
The SAFER Fund will be rolled out across all regions, covering Eastern, North Eastern, Coastal, Central, Western, Nyanza, and Rift Valley. Counties highlighted include major economic centres such as Mombasa, Kisumu, Nakuru, Machakos, and Eldoret, alongside other underserved areas where access to credit remains limited.
Applications will be fully digital through the SAFER portal. Kenya Development Corporation confirmed that all submissions will be online, stating that “all loan applications will be done online as per the requirements in the SAFER Portal” and that “hard copies will not be accepted.”
Applicants are required to visit the Kenya Development Corporation website, access the SAFER portal, create an account, upload mandatory documents in PDF format, and agree to compliance conditions, including a non-disclosure agreement.
The application window opened on May 5, 2026, and will close on June 2, 2026, giving applicants 21 working days to submit their applications. The corporation has warned that late submissions will not be considered.
Kenya Development Corporation said the SAFER Fund is expected to strengthen financial inclusion by improving liquidity flow to MSMEs, which continue to play a key role in Kenya’s economy but face persistent challenges in accessing credit.
The initiative also aligns with ongoing government efforts led through the National Treasury and the Ministry of Micro, Small and Medium Enterprises Development to expand access to affordable financing and support growth in the small business sector.
By working through financial intermediaries, the SAFER Fund aims to reduce lending risks while ensuring that small enterprises can access credit to recover, sustain operations, and expand in a more stable economic environment.