Briefly explain role of the following Financial Institutions in the economic development of Kenya: a) Kenya Industrial Estates: Kenya Industrial Estates (KIE) Limited was established in 1967 as a subsidiary of Industrial and Commercial Development Corporation (ICDC) with a major role of promoting indigenous entrepreneurship by financing and developing small scale and micro enterprises.
KIE Limited was established to facilitate development and incubation of micro, small and medium enterprises (MSMEs) countrywide by establishing industrial parks, providing credit and business development services (BDS) in a sustainable manner. The services offered by KIE include; * Development of Industrial Estates and Provision of MSMI Incubation Services Kenya Industrial Estates LTD provides serviced workspace through construction of industrial estates/incubators in fast growing business centres.
These facilities provide entrepreneurs with specific services to nurture and encourage growth of their enterprises to sustainable levels. Apart from flexible and affordable workspace, the enterprises within the incubators are able to access financial support for machinery, equipment and working capital, shared utility services, management and technical assistance including skills upgrading, marketing, accounting, legal, secretarial services and internet and networking.
Jenny Sandbacka, Satu Natti and Jaana Tahtinen Department of Marketing, University of Oulu, Oulu, Finland Abstract Purpose – The purpose of this paper is to explore the internal and external corporate branding activities of micro-sized industrial business services companies. Design/methodology/approach – An abductive research approach and a case study method were used. Data were gathered with ...
New industrial estates are being developed in fast growing urban centres and Special Economic Zones as identified in the Vision 2030 * Financial Support Services Credit Facilities: KIE provides affordable medium to long-term finance to MSMIs for the purchase of machinery, equipment and working capital, either for start-ups, expansion, modernization or rehabilitation focusing on priority sectors identified in Vision 2030. Special Credit Facilities for Marginalized Areas: This product is availed in marginalized areas with favourable terms and conditions.
Top up Loan Facilities: This is a product targeting the existing KIE clients (loanees, mortgages and tenants) who have/had good credit record and have potential for growth and wish to acquire additional capital or financial assistance Bid Bond Facility: A bid bond is issues as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid.
KIE charges for this service at a negotiable rate. Performance Bond Facility: For this product, KIE has set aside funds in a commercial bank to facilitate performance bid bond facility to its ‘A’ Rated Clients Industrial Shed Rehabilitation: This facility is for mortaged industrial workspace where the mortgagee can access credit facilities to rehabilitate or expand and modernize their workspace * Business Advisory Services
To ensure success and growth of its incubatees, KIE LTD has set up business solution centre’s which provide entrepreneur capacity building training, mentoring and consultancy services, preparation of feasibility studies, business plans, business counseling, needs assessment, project implementation/supervision/monitoring, technology selection services, marketing support, rehabilitation, expansion and repositioning/modernization. Facilitating Inter-Firm linkages This programme involves facilitation of linkages between the small, medium and large-scale enterprises mainly to enable technology transfer.
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KIE facilitates improvement of technology and standards of the MSMIs through equipment upgrading, apprenticeship training and provision of working capital. District Business Solutions Center The KIE LTD District Business Solution Centre’s (DBSC) support the government strategy to revitalize the SME sector and thus the economy as articulated in the new sessional paper No. 2 of 2005 on Development of Micro and Small Enterprises of Wealth and Employment Creation for Poverty reduction The Private Sector Development Strategy Paper (PSDS)
The districts in focus are considered the milennium districts and include, Murang’a, Meru South, Bondo, Siaya, Bungoma, Suba, Kilifi, Turukana and Garissa. Business SME solution centre’s are facilities that are set up to offer platforms from which entrepreneurs can develop business ideas into profitable business ventures run and owned by individuals. It also provides breeding grounds for existing business for growth and take-off.
b) Industrial & Commercial Development Corporation (ICDC):ICDC is the pioneer Development Finance Institution (DFI) established in 1954, to acilitate economic development of Kenya through provision of medium and long-term financial solutions. * It provides equity solutions to entrepreneurs through Joint ventures and Strategic partnerships to promote and encourage private sector investment and entrepreneurship for job and wealth creation. * ICDC also seeks to grow existing businesses and promote establishment of new ones through provision of corporate and wholesale loans at competitive rates and also through asset financing. * ICDC also provides Management and Advisory Services to corporate institutions.
The Services offered include: * Corporate Secretarial * Share Registration * Internal audit c) The Agricultural Finance Corporation (AFC): AFC is a wholly owned Government Development Finance Institution (DFI), established in 1963 initially as a subsidiary of the Land and Agricultural Bank. In 1969, it was incorporated as a full – fledged financial institution under the Agricultural Finance Corporation Act, Cap 323 of the laws of Kenya. It was then tasked in assisting in the effective and peaceful transfer of land to indigenous farmers, as well as injecting new capital to farm owners to spur development.
I would like to thank my supervisor, Professor Jake Ansell, for all his support and encouragement during this challenging dissertation period. My gratitude also goes out to all academic and support staff of the MSc Marketing and Business Analysis course for what was an educational stimulating academic year. All the knowledge passed on and assistance given formed a solid foundation that was ...
After successful implementation of this task, AFC was further reconstituted in 1969 to assume a wider mandate by taking over the functions of the Land and Agricultural Bank of Kenya. Today AFC remains the leading Government Credit institution mandated to provide credit for the sole purpose of developing agriculture. This role is crucial given that Agriculture is the mainstay of the Kenyan economy where 80% of the Kenyan population which is rural based relies on agriculture as their main support system.
AFC provides subsidized loans e. seasonal crop credit, water development loan, cash crop loan, horticulture and floriculture development loan, machinery loan, agribusiness loan, livestock and fisheries development loan, the vuna account loan, stawisha group loan and the school based to assist individuals, groups and corporation wishing to engage in agriculture as a business with finances to enable them start, grow and profit from this ventures and to grow the Kenyan economy while creating employment opportunities to the youth and the rural folk.