KCB Bank sets up Sh800m kitty for Nakuru SMEs
Customers being served at a Kenya Commercial Bank branch in Nairobi.
What you need to know:
- The bank on Friday signed a partnership agreement with the County Government of Nakuru.
- KCB to provide affordable facilities to enterprises and cooperative societies that have been affected by Covid-19.
KCB Bank has set up a Sh800 million kitty to finance the revival of small businesses and cooperatives in Nakuru County affected by the Covid-19 pandemic.
The kitty, set up in partnership with the Nakuru County government, is targeting thousands of Small and Medium Enterprises (MSMEs) and cooperatives.
The bank on Friday signed a partnership agreement with the County Government of Nakuru, under which the county has set aside Sh52 million as interest subsidy and credit guarantee.
In this case, the government will pay part of the interest (5 percent) while business owners and/or cooperative societies will pay the balance of 7.5 percent.
KCB will in turn provide affordable facilities to the enterprises and cooperative societies that have been affected by the pandemic.
“We want to support the businesses as they push for recovery from the effects of the pandemic. We are deliberate in our effort to be the ‘partner kwa ground’ for support towards MSMEs across the country. We believe that the support given will go a long way to benefit the livelihoods of our people and our economy as a whole,” said KCB Bank Director Retail, Annastacia Kimtai.
“The interest sharing, and guarantee model is one of the innovative ways the bank has developed to facilitate credit to catalyse the business growth of the entrepreneurs and enable economic recovery. We know that small businesses are most at risk from the economic disruption posed by the global outbreak of coronavirus. It is only through strategic partnerships including with county governments that we can support businesses to weather this crisis,” she added.
The MSMEs in Nakuru County will be financed according to their ability to pay based on their cash flows.
"We are keen on this partnership as it speaks directly to the core of our economy - MSMEs. The country is aligned to the fact that this segment is what drives the economy and therefore requires to be fully supported," noted Nakuru County Governor, Lee Kinyanjui.
Last year, KCB partnered with various counties in lending to MSMEs under interest subsidy and Credit Guarantee to cushion them from the effects of Covid19.
Beyond the funding, the bank will also support entrepreneurs through its social investment arm, KCB Foundation, where through the 2jiajiri programme, it will provide youths with skills training and business development support to grow their businesses.
