Chamber of Commerce in deal with banks to offer unsecured loans to SMEs

The Kenya National Chamber of Commerce and Industry (KNCCI) is partnering with financial institutions to provide unsecured loans to its members.

The newly elected President Richard Ngatia has said he has reached an agreement with local banks to issue out Sh150 billion to local small medium enterprises that are members of the group.

Ngatia said after rigorous consultations, the banks agreed to offer the loans without demanding for collaterals as the chamber has its systems of reaching out to its members.

“We know all our members in the branches, where they live, what they do and if they take loans through us, we will make sure they pay up on time,” he said.

He said KNCCI has signed a memorandum of understanding with the Kenya Banks Association to reach out to the jua-kali sector that has over 6 million people.

The Chamber is also in talks with Kenya Revenue Authority to harmonize all licenses issued out to traders into one.

He said in Nairobi County, the chamber has managed to have them reduced from 22 to just four, which he said will be tried out in all counties.

Ngatia said the chamber is encouraging members to work towards reviving collapsed factories as a way of supporting the Big four agenda by the jubilee government.

He cited the avocado deal with China that allows local farmers to export value-added fruits.

 KNCCI has already sat with a delegation from the Chinese Chamber of Commerce to discuss ways in which local entrepreneurs can be assisted to revive factories, he said.

“We agreed that they will assist us with the required expertise to support farmers with modern technology to help in packaging and value-addition,” he said.

There is a lot of opportunity to tap into in the value-addition sector, he added.

Ngatia also noted that the group is engaging an ICT company to enhance real-time communication between the branches.

“It is now time for us to move from the colloquial to digital way of doing things. We have established a policy development unit that will help in research and legal issues and come up with ways of enhancing the business environment,” added Ngatia.

The chamber will also establish an industrial park on a five acre land it owns along Thika road for investors to set up businesses.

Ngatia said that while touring the Murang’a branch office, adding that he will go round all branches to establish their needs before he settles in his office.

That, he said, will help him to accommodate and address the needs of all members.

Ngatia took over the leadership of the chambers from Kiprono Kittony mid this month after two of his contenders stepped down.

The elections slated for June 6 will now be used to fill up other positions in the national office while Ngatia with assume office during the annual general meeting scheduled for next month.