ICDC cuts rates to 13% to bolster SMEs’ growth
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.