County Government of Laikipia

Small and medium enterprises in Laikipia continue to apply for Economic Stimulus Fund. So far 109 SMEs have had their loans successfully approved by KCB Bank and Cooperative Bank. Enterprises have been able to access loans in form of working capital, assets finance, invoice discounting, local purchase orders (LPOs), group loans, and agribusiness loans.

The economic stimulus fund is a partnership of the County Government of Laikipia and several financial institutions which offer loans at affordable interest rates to enterprises in the county to cushion them from the adverse effects of Covid-19.

The county government is eager to ensure that there is enough cash flow to keep businesses afloat amidst the pandemic.

Through the partnership, 14 invoices discounting have been completed to the tune of Ksh. 30 million and one local purchasing order (LPO) financing amounting to Ksh. 1.8 million.

The county has also signed an MOU with Family Bank, the latest entry to the partnership.

With the county assisting enterprises in repaying 5 percent of the interest on the loan while the enterprises will only meet the rest 7.5%.

Our business development officers have been crucial in linking SMEs with banks; one applicant who had applied for the loans has already been repaid. He then applied for the second one, which was also approved. Economic Stimulus Fund Manager Edward Njuguna said.

The business development officers have been sensitizing SMEs and cooperatives on the partnership that exist. They also perform pre-approval visits with bank officials to enterprises.

(Published by ICT | Source: Laikipia Weekly Bulletin Issue 0060).