Revolving fund created for SMEs
A revolving fund has been launched for small to medium-sized enterprises (SMEs) in Kenya.A revolving fund has been launched for small to medium-sized enterprises (SMEs) in Kenya.
The Sh3.8 billion (€30 million) deal
introduced by the Government and enable businesses to create jobs and expand, the Nairobi Star reports.
It will use money transfer systems to loan funds to less sizeable traders operating in rural areas.
A statement was made on behalf of Finance Minister Uhuru Kenyatta by his Financial Secretary Mutua Kilaka at the third African Rural and Agricultural Credit Association Central Banks' forum at Whitesands Hotel, Mombasa.
The speech read: "This fund will leverage on existing and tested institutional and financial frameworks to deliver credit to SMEs."
For every Sh1 the government contributes to the fund, banks chosen for on-lending will offer a minimum of Sh5, the news provider continued.
The African Rural and Agricultural Credit Association is focused on providing access to finance for those living in rural areas and encouraging economic development.