ACCESS TO CHEAP LOANS

Lack of capital a hindrance to young entrepreneurs — Kabondo MP

Obara says her office will support saccos and other organised groups to get finances to do business.

In Summary

• Obara spoke on Friday during the launch of Rachuonyo East Entrepreneurs Savings and Credit Co-operative Society. 

• The sacco has registered more than 400 women who will receive loans at cheaper rates than offered by other financial institutions.  

MPs Eve Obara (Kabondo Kasipul), Patrick Musimba (Kibwezi) and Millie Odhiambo (Suba North) during the launch of the Rachuonyo East Entrepreneurs Savings and Credit Co-operative Society at Jabali on November 8,2019
MPs Eve Obara (Kabondo Kasipul), Patrick Musimba (Kibwezi) and Millie Odhiambo (Suba North) during the launch of the Rachuonyo East Entrepreneurs Savings and Credit Co-operative Society at Jabali on November 8,2019
Image: ROBERT OMOLLO
MPs Eve Obara (Kabondo Kasipul), and Millie Odhiambo (Suba North) at Jabali in Kabondo Kasipul constituency on November 8.
MPs Eve Obara (Kabondo Kasipul), and Millie Odhiambo (Suba North) at Jabali in Kabondo Kasipul constituency on November 8.
Image: ROBERT OMOLLO

Many women and youths in Kabondo Kasipul are willing to start businesses but are unable due to a lack of capital, area MP Eve Obara has said. 

Obara said her office will support saccos and other organised groups to get finances to do business. 

She spoke on Friday during the launch of Rachuonyo East Entrepreneurs Savings and Credit Co-operative Society at Jabali in Kabondo Kasipul. 

The sacco has registered more than 400 women who will receive loans at cheaper rates than offered by other financial institutions.  

“We decided to support this sacco after realising that there is an overwhelming demand for capital among our youths and women,” Obara said.

Obara said that they expect the Sacco to continually grow and have at least 5,000 members soon.

Also present at the lunch were MPs Millie Odhiambo (Suba North), Gideon Ochanda (Bondo) and Patrick Musimba (Kibwezi West). 

“There are many people who have become millionaires through the support of saccos. I urge residents to embrace this project to ensure it transforms their lives,” Millie said.

She urged youths to desist from the belief that people can only become financially stable if they steal resources from various sectors.

“Our youths must stop this notion of 'a hustler' in which they believe one cannot be rich unless they steal. Let them save and do business,” Millie said.

Sacco chairperson Rejina Akinyi said they have been getting loans from financial institutions at high-interest rates, stifling their businesses.

“We have been relying on some financial institutions with unfavourable loan terms. They have ended up auctioning many people's property,” Akinyi said.

Akinyi said they target to buy a sweet potato processing machine.

“There is a need for value addition on the sweet potato the majority of us produce. The sacco aims to make women and youth self-reliant,” she said.

Ochanda urged residents to avoid fear that their property would be auctioned if they borrow loans.

“Loans are compulsory for someone who wants to operate a serious business. What matters is the prudent use of the borrowed funds,” Ochanda said.