Principles

The KCGF will operate according to the following principles:

  • The KCGF will be established as an independent legal entity based on a sound and clearly defined legal and regulatory framework.
  • The KCGF will have adequate funding to achieve its policy objectives, and the sources of funding will be transparent and publicly disclosed.
  • The legal and regulatory framework will promote safe, effective stewardship of our capital funds.
  • The KCGF will be given independent and effective oversight by CBK based on risk-proportionate regulation scaled by the products and services offered.
  • The KCGF will have a clearly defined mandate supported by strategies and operational goals consistent with its policy objectives.
  • The KCGF will have a sound corporate governance structure, with an independent and competent management board appointed according to clearly defined criteria, specified in Law and its charters.
  • The KCGF will have a sound internal control framework to safeguard the integrity and efficiency of its governance and operations.
  • The KCGF will have an effective and comprehensive risk management framework which identifies, assesses and manages the risks related to its operations.
  • The KCGF will adopt clearly defined and transparent eligibility and qualification criteria for MSMEs, lenders and credit instruments.
  • The KCGF’s guarantee delivery approach will appropriately reflect a trade-off between outreach, additionally and financial sustainability.
  • The guarantees issues by the KCGF will be partial, providing the right incentives for MSME borrowers and lenders.
  • The KCGF will adopt a transparent and consistent risk-based pricing policy to ensure that the guarantee program is financially sustainable and attractive for both MSMEs and lenders.
  • The claim management process will be efficient, clearly documented and transparent, providing incentives for loan loss recovery.
  • The KCGF should be subject to financial reporting requirements and have its financial statements externally audited.
  • The KCGF will periodically and publicly disclose non-financial information related to its operations.
  • The performance of the KCGF will be systematically and periodically evaluated and the findings publicly disclosed.