About 1,700 small and medium-sized Enterprises will benefit from the Inuka Enterprise programme this year by the Kenya banking industry.
The programme initially targets players in the leather, textile and agricultural industries, the Kenya Bankers Association (KBA) announced yesterday.
“Banks through KBA are making strides in tailoring their loan products to grow this market segment despite the recent enactment of interest rate capping law,” said Andrew Githaiga, a representative of KBA during a business growth programme forum organised by Kenya Association of Manufacturers (KAM) in Nairobi.
KBA’s Inuka programme is valued at over Sh30 billion, provided in form of loans at 14 per cent per annum interest rate to qualified enterprises.
The loan is fixed on a reducing balance basis for a two-year period.
Of the SME support facility, Sh10 billion has been allocated to women- and youth-owned businesses.
The programme also aims at aiding informal businesses move into the formal segment by helping them to register.
According to the Kenya National Bureau of Statistics, there are more than 17 million registered SMEs in the country, with 19 per cent enterprises contributing 25 per cent of Kenya’s gross domestic product (GDP) and up to 50 per cent of youth employment in the country.
KAM Head of Consulting Joyce Njogu said the business growth programme aims to equip existing established businesses with the required management systems and processes to manage the growth of their businesses.