The trade department in Bungoma County has announced plans to disburse trade loans starting early February this year to boost Micro, small and medium enterprises across the county.
The move, led by Governor Kenneth Lusaka, aims to address the challenge of limited access to affordable financing for local entrepreneurs often faced with high interest rates from mainstream banks.
CECM for trade Bungoma County Carolyne Khalayi said that the department will not only provide loans but also offer comprehensive training on loan management to both the loan vetting committee and beneficiaries, emphasizing capacity building as a key component of the program.
Chief Officer for Trade, Reuben Wambwa, elaborated on the fund’s guidelines and regulations, highlighting its successful past phases.
In 2014-2015, the first phase saw 1,989 beneficiaries receive KES 50 million, followed by 2,157 beneficiaries in the second phase with the same amount.
To ensure efficient loan management and recovery, the department has implemented an automated system with integrated modules for traders, banks, and M-Pesa for convenient loan repayments.
“We encourage traders to apply for the loans, which will be rolled out in February,” said Khalayi, inviting participation from the county’s business community.
The consultative meeting, aimed at ensuring smooth implementation, was attended by key stakeholders including county legal advisor Amos Makokha, fund administrator Stephen Sitati, and staff members from the Department of Trade.
This initiative underscores Bungoma County’s commitment to fostering a conducive environment for MSME growth and economic development