The government has launched the countrywide registration of informal micro small businesses in preparation for the group funding under the hustler fund.
Cooperatives and Micro and Small Enterprises Cabinet Secretary Simon Chelugui, yesterday, told journalists that all unregistered small businesses in need of funding and looking forward to benefiting from the hustler fund group funding are hereby requested to register at a cost of Sh100.
According to him, registration is aimed at tracking and allowing easy support for growth, offering tailored training and facilitating common user facilities while incorporating technology.
"This is in preparation for the group funding under the hustler fund that is to be launched in the first week of next month,'' he said.
To register for the fund, traders are supposed to make a request on the Micro and Small Enterprise Authority (Msea) website.
Further plans are underway to make the registrations through the USSD code.
The loans will be disbursed through saving and credit co-operative societies (Saccos) and commercial banks, said Co-operatives and SMEs Cabinet Secretary Simon Chelugui.
“The second phase of the Hustler Fund microloan product that we shall roll out the first week of April will have borrowers access between Sh100,000 and Sh2.5 million and done mainly through banks and Saccos,” Chelugui said.
He revealed that the personal product which was launched late last year which offers between Sh500 and Sh50,000 at an interest of eight per cent has in over three months credited over 19 million Kenyans with a total of Sh22 billion disbursed.
The total repayment stands at Sh13 billion representing close to 60 per cent performance.
The number of repeat customers stands at 6.5 million, majority of them coming from the 'juakali' sector.
At least 53 per cent of borrowers use feature phones (Mulika Mwizi) while the remaining 47 per cent use smartphones, depicting the majority beneficiaries of the product.
Thus the CS reiterated the need of formalising the engagement between the informal sector to streamline working structures that could improve also their credit worthiness, attracting private lenders to venture into their businesses.
According to Richard Muteti, the CEO Confederation of Micro and Small Enteprises Organisation, East Africa, formalisation through registration will prompt more SMEs to become bankable, increasing their credit worthiness.
"The move will enhance affordable, easy and faster access to financing from banks for business expansion and growth," Muteti said.
