This archive report was first published on 6 July 2020.
Co-op Bank and Laikipia County Launch Enterprise Fund to Support Entrepreneurs ¶
On July 6, 2020, Co-op Bank and Laikipia County launched the Laikipia Enterprise Fund with an initial kitty of KSh 300 million.
The fund aims to provide affordable financing and business support to co-operatives and entrepreneurs in Laikipia county, targeting at least 7,000 entrepreneurs to recover from the economic downturn caused by the COVID-19 pandemic.
The fund will offer loans to successful applicants at an interest rate of 7.1% annually, down from 12.1%, and borrowers will also enjoy a reduced appraisal fee at 1.5% of the approved loan amount.
Laikipia County Government and the Co-operative Bank of Kenya (Co-op Bank) have entered into an Interest-Sharing and Guarantee Arrangement to support two key segments: empowering co-operatives in Laikipia county through affordable financing and consultancy services, and supporting over 7,000 entrepreneurs in Laikipia county to recover from the challenges of the COVID-19 pandemic.
Co-op Bank will match three times the amount that the County Government will place in the Enterprise Fund, to ensure as many borrowers benefit from the opportunity.
Repayment period for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives.
Laikipia County shall undertake initial vetting of loan applicants as provided for in the Laikipia County Enterprise Fund Regulations 2020, and Co-op Bank will further appraise for qualification.
