This content has been archived. It may no longer be relevant
A plan to merge Industrial and Commercial Development Corporation (ICDC), IDB Capital Limited and Tourism Finance Corporation (TFC) to form the Kenya Development Bank (KDB) has taken shape after the National Treasury asked the public to give their input.
Treasury says KDB will establish a single cross-sector Development Finance Institution (DFI) with sufficient scale, scope and resources to play a catalytic role in Kenya’s Economic Development by providing long-term financing and financial, investment and business advisory services to meet objectives under vision 2030 and to support the implementation of the Big 4 Projects.
“A task force comprising of senior officers from the National Treasury & Planning, Ministries of Tourism & Wildlife; and Industry, Trade & Enterprise Development, the Attorney General and the three DFIs developed a draft Kenya Development Bank Bill, 2020 to facilitate the merger,” says Cabinet Secretary Ukur Yatani.
According to the Kenya Development Bank Bill 2020, (draft for public comments), the function of the planned state bank will include:
One, to facilitate the industrial and economic development of Kenya by the initiation, assistance or expansion of industrial, commercial or other undertakings and enterprises.
Two, promote sustainable economic development by providing development finance, infrastructure finance, business support and advisory services to medium and large-scale industries, infrastructure projects and commercial undertakings in target Sectors.
Three establish, participate by way of joint or private equity ventures, finance or otherwise assist in the establishment of companies for execution of undertakings, works, projects or enterprises whether public or private and to acquire, underwrite and dispose of shares and interests in such companies.
Four, provide venture capital, seed capital and risk capital for the development of industries.
Kenyans have until June 19 to give their views on the draft Kenya Development Bank Bill, 2020.
Finance
The funds of the Bank shall consist of: the capital of the Bank; monies appropriated by the Parliament for the purposes of the Bank; donations, grants, loans or gifts approved by the Cabinet Secretary; and such funds as may accrue to or vest in the Bank in the performance of its functions under this Act or any written law.
“The authorized capital of the Bank shall be one hundred billion Kenya Shillings divided into twenty billion shares of the par value of five Kenya Shillings each,” the Bill proposes.
Management
The bank will be headed by a director-general appointed by the bank’s board of directors in consultation with the Treasury Cabinet Secretary.
The board’s chairman will be, appointed by the President for a three-year term, shall be tasked to run the bank.
Other proposed members are principal secretaries for Treasury, Industrialisation, Tourism, the Attorney General, and four Treasury CS appointees.
The Bank shall not be wound up except by or under the authority of an Act of Parliament.
