Equity, KNCCI roll out Ksh.200 billion loan facility to support small businesses
Equity Group alongside the Kenya National Chamber of Commerce and Industry (KNCCI) have announced the creation of a Ksh.200 billion credit facility for small businesses in the country.
The new facility, to be rolled out across the next three years, is expected to support up to three million Micro, Small and Medium Enterprises (MSMEs) as the entities seek to navigate challenges emerging from the pandemic.
The pair of institutions is expected to partner in the training of potential beneficiaries from the credit facility through the establishment of a steering committee.
Equity and KNCCI are further expected to enrol all 47 counties in a means to stimulate the uptake of the program.
On its part, the chamber is expected to conduct due diligence on members and verify their eligibility for loans.
So far, the pair has reported the mobilization of 16,186 MSMEs, the profiling of 6,297 businesses and the training of 8,877 entities.
“The facility will be beneficial to Kenyan businesses and will help alleviate the sudden economic disruptions caused by the COVID-19 pandemic, facilitating the reopening of the economy,” noted KNCCI President Richard Ngatia.
Equity Group Chief Operating Officer and Managing Director for Equity Bank Kenya (EBKL) Polycarp Igathe said the new facility is part of the bank’s extended support to the private sector amidst credit growth shocks occasioned by the tough operating environment.
“Lives and livelihoods cannot be transferred when people don’t have income which is generated through enterprise. The lack of credit has been a real challenge but we are pronouncing our openness for business,” he said.
The new credit facility is expected to lend at a flat interest rate of 13 per cent.