This archive report was first published on 6 July 2020.
Laikipia County and the Co-operative Bank of Kenya (Co-op Bank) have partnered to launch the Laikipia Enterprise Fund, a Ksh 300 million initiative aimed at supporting co-operatives and entrepreneurs in Laikipia County.
Launched on July 6, 2020, the fund is designed to offer affordable financing and business support to over 7,000 entrepreneurs in the county who were affected by the Covid-19 pandemic.
Under the interest-sharing arrangement, the Laikipia County Government will offer an interest subsidy of 5 per cent, reducing the bank lending rate from 12.1 per cent to 7.1 per cent per annum for all borrowers.
Co-op Bank Group Managing Director Gideon Muriuki said, 'Borrowers will pay single-digit interest rates, making this arrangement perhaps the most affordable lending program in Kenya today.'
The fund will also provide digital banking tools, workshops for business training, and capacity-building consultancy services for co-operatives.
Repayment periods for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives.
