KCB, Kiambu County Launch Ksh 1.3B Fund for MSMEs

KCB Bank in partnership with Kiambu County Governor, James Nyoro, have launched a Ksh1.3 billion fund that is set to benefit Micro, Small and Medium Enterprises (MSMEs).

The MSMEs are expected to use the funds to grow their businesses and improve their livelihoods.

Speaking during the launch, Governor Nyoro said the government will subsidise the interest rate by 50% and act as a guarantor for those loans with Ksh 138 million as collateral .

“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%,” said Nyoro.

Youths, women and people living with disabilities will be able to access loans worth Ksh 20,000 to over Ksh 200,000 at low interest rate without any collateral.

Start-ups will be able to access loans of up to Ksh 150,000 and groups will access up to Ksh 300,000. Existing MSMEs and Saccos will get financing for up to Ksh 1 million.

Nyoro added that businesses will receive support and mentorship on the utilisation and sustainability of the fund.

“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.