ICDC cuts rates to 13% to bol­ster SMEs’ growth

The Star (Kenya) - - News -

In­dus­trial and Com­mer­cial De­vel­op­ment Cor­po­ra­tion, a state-owned de­vel­op­ment fi­nancier, yes­ter­day set the cost of loans at three per­cent­age points above the 10 per cent Cen­tral Bank Rate. The paras­tatal said the pric­ing of loans at 13 per cent will stim­u­late faster growth among the small and medium en­ter­prises. This is a drop from 16 per cent av­er­age be­fore the rate cap­ping law was en­forced on Septem­ber 14. “The cor­po­ra­tion wel­comes the gov­ern­ment’s re­solve to re­duce the cost of bor­row­ing as it is set to in­crease the level of in­vest­ments,” act­ing ex­ec­u­tive di­rec­tor Kennedy Wan­deri said. “With the de­crease in the cost of bor­row­ing, the up­take of loans across the econ­omy is ex­pected to go up thereby stim­u­lat­ing eco­nomic growth.” ICDC cur­rently of­fers fi­nan­cial prod­ucts for joint ven­tures, strate­gic part­ner­ships, quasi equity, cor­po­rate and whole­sale loans.

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