The County Government of Nakuru has launched the County Enterprise and Cooperative Funds with an aim to empower entrepreneurs.
To a tube of Kshs. 100 million, the revolving fund will support the growth of cooperatives and small Enterprises through organized Self-Help Groups and cooperatives
marks a major milestone in our journey to empower Nakuru’s entrepreneurs and cooperatives as we officially launch the Nakuru County Enterprise and Cooperative Funds. This is a Kshs. 100 million revolving fund dedicated to supporting the growth of cooperatives and small enterprises through organized Self-Help Groups and cooperatives.
Speaking during the event, Governor Kihika reiterated her commitment towards economic empowerment of groups.
She noted that the fund is designed to boost local economic development, create jobs, and empower communities from the grassroots level.
“We want to ensure that the SMEs and various groups in businesses are empowered,” stated Kihika.
During the launch, Governor Kihika together with Trade CECM Stephen Kuria issued cheques to the qualified cooperatives and Self-Help Groups, marking the first phase of this transformative initiative.
She called on all organized groups to apply for the funds while calling on those who have received the funds to prudently use the funds towards their economic empowerment and pay on time to help other groups benefit.
Sentiments echoed by CECM Kuria who reminded the beneficiaries that the group is
Small and Medium Enterprises (SMEs) in Nakuru are set to benefit from the Sh100 million fund.
The fund was established by the county government to provide cheap credit to entrepreneurs previously excluded from the financial landscape.
According to CECM Kuria, the money will be administered through the Nakuru County Enterprise Fund and the Nakuru Cooperative Revolving Fund providing loans for businesses that are disadvantaged by stringent requirements set by banks.
The Fund provides loans ranging from Sh50,000 to Sh200, 000 at an interest rate of eight per cent per year, while the Cooperative Revolving Fund issues loans from Sh200,000 to Sh5 million at an interest rate of six percent per annum.
The fund targets small business people, especially vegetable vendors, boda boda operators, and farmers.
It should be noted that in November last year, Governor Kihika operationalized the Nakuru County Enterprise Fund.
The fund had not been operational for nearly three years until when she appointed its Board of Directors which comprises six members from the business community who advise the executive on the provision of the cheap credit to local traders.
According to the Nakuru County Enterprise Act 2020, applicants are required to use the loans on businesses only, while flouting the regulation shall lead to their disqualification.
The Act further requires the board to spend at least 25 per cent of the Fund on investment training, technical assistance on product and market development, technology acquisition, adoption, and utilisation.
