County SMEs to benefit from Sh850m loan kitty
BY MERCY KIHUGU
The County Government of Nakuru has signed a Memorandum of Understanding with KCB Bank Kenya Ltd towards the implementation of the Nakuru County Enterprise Fund.
The Shs850 million fund is set to enable Youth, Women, and Persons Living with Disability to create decent wealth and those in Small, Medium Enterprises to access financial and non-financial assistance.
The county negotiated an interest rate of 7.5 percent, which is lower than what most financial institutions offer.
The partnership will boost services provided by the County including; capacity building, training, and mentorship, providing business development services which include marketing and marketing linkages for the startups and SMEs.
Nakuru County Governor, H.E Lee Kinyanjui said that the partnership will help in intervening on issues affecting the targeted groups since there will be equal availability of resources.
“The partnership will also help in the promotion of programs that provide opportunities for youth employment and in cultivating the saving culture with better financial knowledge to reduce the cases of youths depending on government handouts,” added the Governor.
Under the agreement, loan applicants shall receive free training to ensure there is proper management of the funds and the creation of sound investments
Additionally, the Governor, said that his administration has leased 10 acres of land that will be an SME center, giving hawkers, shoe shiners and similar businesses a physical address to increase their creditworthiness.
He noted that conditions set by financial institutions such as audited accounts and physical addresses were a major challenge to credit access for business owners in the country.
KCB Bank Kenya Ltd Director Retail, Ms Anastacia Kimtai, appreciated the partnership between the two organizations to support Small and Medium Enterprises within Nakuru County.