Siraji Sacco receives Ksh170 million financing boost from World Bank

Siraji Savings and Credit Co-operative Society Ltd has received Ksh170 million financing boost from the AVLC Group, marking the latest disbursement under a World Bank-backed financing programme aimed at revitalising Micro, Small and Medium Enterprises (MSMEs) in Kenya that were adversely affected by the Covid-19 pandemic.

Siraji Sacco, a SASRA-compliant cooperative society, supports small and medium-sized enterprises by providing access to affordable credit. The new facility is expected to significantly strengthen the Sacco’s capacity to support members as businesses continue to recover from the economic shocks caused by the pandemic.

The financing comes two months after Githunguri Sacco benefited from a similar arrangement, receiving a Ksh500 million loan structured by AVLC Group and sourced from the World Bank through the Kenya Development Corporation (KDC). The funds are designed to enhance access to small loans for Sacco members.

The World Bank established the business loans facility to cushion SMEs from the economic impact of Covid-19. the funds are channelled through KDC, with several SACCOs already accessing financing under the programme.

The facilities carry a tenure of between three and five years at an interest rate of nine per cent, offering cooperative societies long-term and affordable capital to support enterprise recovery and growth.

ALSO READ:

State begins nationwide mapping of Artisanal Miners to fast-track licensing

Speaking during the handover, AVLC Group Chief Executive Officer Andrew Kanyutu said MSMEs suffered extensive damage during the Covid-19 period, noting that SACCOs remain one of the most effective channels for reaching affected businesses.

“SACCOs are one of the best avenues to reach those businesses because they are on the ground, understand their needs, and are able to continuously collect feedback to support members through the recovery journey,” said Kanyutu.

Siraji Sacco Chief Executive Officer Felix Ochieng welcomed the funding, saying it will directly support members whose businesses were disrupted by the pandemic. He cited the devastating impact of lockdown measures on key sectors, including agriculture and hospitality.

“We are glad that KDC has approved Ksh170 million for us, which we will use to support members affected by Covid-19. Siraji Sacco was also affected. We had members in poultry farming who lost business when lockdowns were imposed. At one point, we had 22,000 birds ready for supply to hotels in Nairobi, but movement restrictions brought operations to a halt,” Ochieng said.

AVLC Group had called on more SACCOs across the country to apply for financing under the programme, noting that cooperative societies play a critical role in extending credit to MSMEs at the grassroots level and strengthening Kenya’s broader economic recovery.

By Obegi Malack

Sharing is caring!