Kakamega traders to benefit from Sh250 billion Equity loans

Traders in Kakamega county will benefit from a Sh250 billion loan scheme by Equity bank.

The bank has set aside the money under its post-Covid-19 recovery fund to support SMEs from the negative effects the coronavirus pandemic.

County trade and industrialisation executive Kassim Were said negotiations were going on between Equity, Kakamega Kenya National Chambers of Commerce and Industry branch and the county government on how traders will be allocated the money.

Were said traders in county would receive between Sh1 billion and Sh3 billion in loans.

"We are still negotiating with the bank. Our allocation as a county will depend on the demand. The interest on the loans will be as low as eight per cent and this is good for traders recovering from effects of Covid-19 as they will be able to repay with ease," he said on Friday.  

KNCCI Kakamega branch chairman Wycliffe Kibisu said all members of the chamber would automatically qualify for the loans. The programme will be rolled out once the pandemic is contained.

He said members of the chamber will not require collateral to secure the loans as the chamber will stand guarantee for them.

Were said that the county government was putting in place structures that could guide disbursement of the loans to traders and ensure they repay.

"We are collecting the data of all traders eligible to benefit from the loan scheme to facilitate easy disbursement of the funds once the programme is unveiled by the bank," he explained.

Were added that cane farmers would also benefit from the loans to help them revive growing of the cash crop and ensure constant supply of the commodity to the struggling Mumias Sugar company once it resumes full operations.

He noted that a training programme for beneficiaries would be rolled out to prepare them adequately before they get the loans.

"We will use graduates in marketing and business administration who are jobless to train them and earn a living," he said.

Edited by Henry Makori