The pandemic has not been easy for many micro and small businesses. MSMEs have been immensely affected by the economic impacts of the Covid-19 Pandemic. And in order to help them recover and get their footing back, KCB will start giving them recovery loans.
The health and economic criris have not only strained MSMEs but also large companies across the world and in Kenya. Most businesses have reported lower revenue and thinner margins.
A majority of small and medium-sized enterprises, depend heavily on debt to run their business operations. KCB will be giving credit facilities ranging from Kes100,000 to Kes5 Million to these businesses if they apply. However, only businesses that have been operating with KCB for at least 6 months are eligible.
Business owners are to service their recovery loan in 36 months.
Annastacia Kimtai, KCB Bank Kenya retail director said that the facility will help MSMEs to restart and rebuild amid the lift of pandemic-related restrictions and recovery.
This follows after the International Finance Corporation (IFC) provided Sh16.5 billion to KCB in October 2020. IFC’s funds were to help KCB scale up lending to micro, small and medium-sized enterprises, including women-owned businesses. This funding is also aimed at boosting green financing.
So far, KCB has partnered with Laikipia and Kiambu counties to disburse small loans.
“We worked with county governments to provide facilities for businesses and cooperative societies whose businesses were affected by the slowdown in business operations,” said Ms Kimtai.
Sourced from Business Daily