By Erick Nyayiera
The government has disbursed over Sh370 million to more than 12,000 small scale traders countrywide through the COVID-19 recovery and resilience program.
The project coordinator Louis Waithera Kabucho, the money is part of the Sh453 million that had been allocated to support the small scale traders.
The project is a partnership between the Kenya National Chamber of Commerce and Industry (KNCCI) and MasterCard Foundation.
To boost small and micro businesses, beneficiaries get business loans of up to Sh30,000 at an interest rate of 0%.
Speaking when she visited small and micro business traders in Bondo and Alego/Usonga sub-counties, Kabucho said the program was predominantly aimed at supporting those operating in informal settlements.
She revealed that they have managed to disburse about Sh7 million to over 270 small and micro business traders in Siaya County.
“The program has done very well with a high uptake since its inception in September last year and the repayment rate which stands at 45% has also been quite impressive,” said Kabucho.
Also present were the KNCCI Regional Director for Nyanza Mr. Paul Ouma and the KNCCI Siaya County branch board members led by their chairperson Roselyn Omuga.
The latter encouraged local traders to continue applying for the loans to enable them grow their businesses.
Small scale traders in the Luo-Nyanza region have were also challenged to change their attitude and embrace the culture of borrowing loans to boost their businesses.
Omuga lamented that despite the numerous money lending programs which have been established to boost small scale traders, the majority were still hesitant to go for the monies.
She lamented that Sh453 million being given to support small and micro businesses under the COVID-19 recovery and resilience program was benefiting traders in other parts of the country.
Omuga observed due to the poor attitude, the region has only borrowed slightly over Sh9 million when other regions such as the Central region have borrowed over Sh40 million since September last year.
She encouraged traders to embrace the culture of borrowing, noting that that they will not grow their businesses if they fear borrowing loans.
“Go for the loans and if possible introduce your children who are school leavers into business to help the regions socio-economic standards grow,” said Omuga.
