By John Majau
Small businesses are set to benefit from affordable low interest loans under a post-Covid-19 recovery strategy that was launched by the Meru County government recently.
Meru Governor Kiraitu Murungi said small holder businesses will access loans ranging from Sh2000 to 30,000 through mobile app dubbed ‘Sacco-Benki’.
He was speaking at an event attended by Industrialization, Trade and Enterprise Development Cabinet Secretary Betty Maina and her Chief Administrative Secretary (CAS) David Osiany.
Mr Murungi said traders will be charged an interest rate of 1% over a period of up to one month, which will be guaranteed through memberships within market associations.
The governor said the loans will come to the rescue of small traders who have been heavily affected by Covid-19 pandemic.
“COVID-19 has destroyed small businesses for the people of Meru such as Boda-boda operators and mama mbogas who sell green produce, cereals, small shops and kiosk owners and all other small entrepreneurs,” said Murungi.
Through the strategy, the county overnment will spend up to Sh 80.5 million to revive those businesse and promote over 14,000 small registered businesses.
Murungi additionally called on residents to back BBI claiming that it will lead to more funds being allocated to the County.
“More money will help us promote a 24 hour economy in the County, as well as ensuring a dust-free trading environment through cabro paving in addition to constructing 154 modern kiosks,” said Murungi.
The Governor asked the CS to facilitate experts willing to make Miraa byproducts get permits from Kenya Bureau Of Standards (KEBS) because various organizations have showcased their ability to create sweets and juice from the herb.
He added besides chewing of leaves, consumers can enjoy other by-products like white and red wine, yoghurt, juice and sweets.
Kiraitu lamented that the closure of the European and Somalia Market had left Miraa farmers hopeless because most of them depended on the crop to support their livelihoods for many years.
CS Maina lauded the Governor for empowering small businesses and assured him that the government was seeking markets for Kenyan traders and farmers, especially Miraa farmers affected the ban of the Somalia Market.
She added that the government was negotiating with Somalia but was also seeking alternative markets including Djibouti for Miraa farmers.
Meru Trade County Executive Committee Member Maingi Mugambi said small scale traders will access instant loans through their phones from the Meru County Microfinance Corporation.
The initiative is supported by the Ministry of Trade through the Micro and Small Enterprises Development Authority.
