Equity releases Sh200b credit to Chamber
Equity Group and Kenya National Chamber of Commerce and Industry (KNCCI) yesterday rolled out a Sh200 billion credit facility for small businesses in the country.
The facility, to be executed across three years, is expected to support up to three million Micro, Small and Medium Enterprises (MSMEs) as they seek to cushion themselves on the back of the Covid-19 pandemic.
Speaking yesterday, KNCCI President Richard Ngatia said the process which started mid this year has now come to a conclusion and the funds are now available for lending.
“We are happy that after several months of consultation and preparation the funds are now ready for disbursement. I would like to encourage KNCCI members to take this opportunity and apply for these loans.”
MSMEs operating within key sectors of the economy such as education, agriculture, agribusiness and manufacturing will be the main target. The fund also targets as women and youth entrepreneurs.
Larger entities will also get competitive interest rates and flexible repayment periods of up to three years on their loan facilities.
“By partnering with Kenya’s largest bank we are increasing opportunities for our members and giving them access to Equity’s resources.
I would like to urge all members to apply through any Equity branch near you,” Ngatia said.
Borrowers who qualify for the credit facility will however be appraised first. They must also be members of the Kenya National Chamber of Commerce and Industry (KNCCI).
Terms of the loan include a repayment period of up to three years with single-digit interest rates which are below market rates.
Apart from the funds, the two institution will also train and capacity build SMEs to increase their capacities.