This archive report was first published on 7 July 2020.
On July 7, 2020, Laikipia County Government and Co-operative Bank of Kenya unveiled a Sh300 million credit guarantee scheme to provide affordable financing to Saccos and SMEs in Laikipia County.
Under the scheme, Saccos will access low-interest loans to finance their members, who have been hit by the Covid-19 pandemic. The fund will also help over 7,000 entrepreneurs in the county recover from the pandemic's challenges through affordable financing and training.
"Borrowers will pay single-digit interest rates, which makes this arrangement perhaps the most affordable lending programme in Kenya today," said Moses Gitau, Head of Business Banking at Co-op Bank.
Co-op Bank will match three times the amount that the county government will place in the Enterprise Fund, ensuring as many borrowers benefit from the opportunity. The bank will also provide digital banking tools, workshops for business training, and consultancy services for co-operatives.
Repayment period for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives. The county government will undertake initial vetting of loan applicants, while Co-op Bank will further appraise for qualification.
Co-op Bank is exploring similar affordable financing arrangements with other counties.
