#22
KDC
In any nation’s journey toward economic prosperity, state-owned enterprises (SOEs) play an indispensable role, particularly those dedicated to economic development. These entities often act as catalysts for growth, bridging critical gaps in financing, fostering innovation, and addressing socio-economic challenges.
The Kenya Development Corporation (KDC) stands as a prime example of such an entity, embodying the transformative power of state-led initiatives in driving business and development. As one of Kenya’s leading Development Finance Institutions (DFIs), KDC is integral to the nation’s efforts to build a robust, diversified, and resilient economy.
KDC’s formation in 2020 was a strategic move to consolidate the operations of three key DFIs: the Industrial and Commercial Development Corporation (ICDC), the Tourism Finance Corporation (TFC), and IDB Capital. This merger aimed to create a robust financial institution capable of addressing the diverse and evolving needs of Kenya’s economy. The government envisioned KDC as a powerhouse, pivotal in providing long-term financing and business advisory services, thus filling the critical gaps left by commercial banks, especially in sectors crucial for economic growth.
The newly formed KDC quickly set about its mission to support Kenya’s socio-economic development. By offering a range of financial products and services, KDC has been instrumental in spurring growth in various industries, from agriculture to tourism. Its mandate includes not only financing but also catalysing strategic partnerships and investments that align with national development goals.
KDC’s portfolio includes several high-impact ventures that underscore its commitment to driving sustainable economic development.
One such initiative is the recently launched climate-smart agri-food investment program. Announced on November 29, 2023, this partnership with the UK-based United Green Group (UGG) is set to transform Kenya’s agricultural landscape. With a substantial investment of USD 275 million, the project aims to integrate agri-fin-tech services, implement high-productivity climate-smart farming practices, and establish cutting-edge agro-processing facilities. Over the next five years, this venture is poised to create new markets for at least 100,000 rural households, significantly reduce Kenya’s dependence on food imports, and foster inclusive, sustainable agricultural practices.
Another noteworthy project under KDC’s auspices is the De-risking, Inclusion, and Value Enhancement (DRIVE) initiative. This collaborative effort with the State Department for Livestock (SDL), ZEP-RE (PTA Reinsurance Company), and the World Bank focuses on bolstering the resilience and economic inclusion of pastoral communities in the Horn of Africa. With a budget of USD 360.5 million, the DRIVE project provides an integrated package of financial services, including drought index insurance and savings schemes, and promotes private sector investment in livestock value chains. Over five years, DRIVE seeks to positively impact over 1.6 million pastoralists by enhancing their financial inclusion, connecting them to markets, and facilitating livestock trade, thereby supporting vulnerable groups like women and youth.
Looking forward, the ambitious KDC 2.0 Strategic Plan for 2023/24-2027/28 outlines a comprehensive roadmap to solidify its position as Africa’s premier DFI. This plan emphasises revamping business models, leveraging technology, and enhancing internal capacities to drive the corporation’s core mandate. The focus areas include maximising impactful development interventions, forging strategic partnerships, and building robust institutional capacity. The vision is clear: to spur socio-economic transformation and elevate Kenya’s standing on the global stage.
At the helm of KDC’s transformative journey is Norah Buyaki Ratemo, appointed as the Director General (DG) on July 4, 2023. Norah brings a wealth of experience and expertise to her role, having previously served as KDC’s Director of Investments. Her professional background is rich with over 15 years in credit risk management, including significant roles at Ecobank Kenya and Sidian Bank. She holds a Master’s degree in Business Administration from Jomo Kenyatta University of Agriculture and Technology (JKUAT) and a Bachelor of Commerce (B.Com) degree in Accounting from the same institution. Additionally, she is a Certified Public Accountant (CPA) and a member of the Institute of Certified Public Accountants of Kenya (ICPAK).
Norah’s leadership is characterised by a strong commitment to strategic growth, operational excellence, and sustainability. Her vision aligns seamlessly with KDC’s mission to foster resilience and adaptation in the face of economic and environmental challenges. Her focus on climate change, green energy, and sustainable development underpins KDC’s efforts to drive long-term socio-economic growth.
As KDC continues to navigate the complexities of economic development, it remains steadfast in its mission to be a catalyst for transformative change. Through strategic investments, innovative solutions, and robust leadership, KDC is poised to elevate Kenya’s economic standing and ensure sustainable growth for future generations. In the broader context of SOEs driving national progress, KDC exemplifies the pivotal role these institutions play in shaping a prosperous and inclusive future.
