Kiambu County residents will now benefit from a Sh1.3 billion fund that was launched by Kiambu County Governor James Nyoro in partnership with KCB bank.
Micro, small and medium enterprises (MSMEs) will benefit from the fund to enable them to grow their business and improve their livelihoods.
Youths, women and people living with disabilities will be able to access loans from Sh20,000 to over Sh200,000 at low interest rate and will not be required to submit any collateral.
Speaking during the launch over the weekend, Governor James Nyoro said that Kiambu County government will subsidize the interest rate by 50 percent and will act as the guarantor for those loans.
“Our role as a County is to ensure we lower the interest rates on these loans. Those who will take the loan will only be required to pay seven percent interest instead of the normal market rate of 13 percent. Kiambu County Government will act as the guarantor with Sh138 million as collateral,” he said.
Start- up financing will be able to access loans of up to Sh.150,000, groups will access up to Sh.300,000, existing MSMEs and Saccos will get financing of up to Sh1million.
Nyoro added that they will develop policies and structures that support the utilization and sustainability of the fund and also facilitate capacity building for entrepreneurs.
“We have a partnership with several institutions within Kiambu, who will train people on business development for a week. We will also have a team of about 12 people who will be visiting the businesses to guide where necessary. The most important thing here is to mentor those people who are in business or want to start a business,” he added.
The governor said that the fund will be of great benefit to existing SMEs especially those that were hit hard by Covid-19 adding that this will give the entrepreneurs an opportunity to grow their businesses and thus improve their livelihood in the process improving the economy of Kiambu County.
Speaking to KNA Margaret Wangari a business owner in Kiambu town said that the fund will be a huge boost to many businesses considering the businesses have been struggling.
“Loans especially in banks can be expensive but with this fund, it is a relief to us entrepreneurs since we will only pay 7 percent interest. We are happy and want to thank the Kiambu County Government,” she said.
Source: Kenya News Agency