Business persons in Lugari sub county have been urged to follow laid down guidelines in order to benefit from the low interest business loans being given by the county government of Kakamega.
Addressing traders in Lumakanda, the Lugari sub county markets administrator Ms. Patricia Mumbi said after losing millions of shillings in the first phase due to defaulters, the county government has put in place measures to ensure repayment of the revolving funds.
She said unlike previously when the loans dubbed “mikopo mashinani” were given directly to small business people without demanding much documentation from beneficiaries, currently there is Kakamega County Microfinance Corporation (KCMFC) charged with giving of the loans noting that there are guidelines that must be met before one qualifies for the loan.
“You must be an active trader in possession of a single business permit, have a KRA PIN, should be able to produce bank or M-PESA statements, have a minimum of two guarantors and not enlisted on CBR for one to qualify for the county loans,” Mumbi revealed.
Ms Mumbi called on Lugari residents to embrace the culture of financial borrowing to expand their business enterprises.
She said the loans are targeting youths and women from Kakamega County who are running businesses and are unable to access commercial loans with an aim of reducing over-dependence and unemployment among residents.
“Interested business people should apply for this loan product due its manageable repayment period and attractive loan conditions,” said Mumbi.
She disclosed that traders who meet the requirements qualify for shs 100,000 and shs 20,000 maximum and minimum loans respectively at low interest of 5 percent.