From the Standard

Small traders will be before the end of the current financial year start borrowing loans at low interest rates compared to the current market rates.  This follows an announcement by government  of plans to establish a new fund specifically for the micro and small enterprises in the next 12-months.

The new fund is expected to boost the  revolving fund initiated a few years ago and currently being administered by various commercial banks.

Ministry of Industrialisation and Enterprise Development Cabinet Secretary Adan Mohamed disclosed that plans are being fast-tracked to ensure a fund accessible to the small traders is established before June next year.

He explained that the intention  to establish the new kitty is informed by the challenges small traders are facing today and thus not able to contribute fully to the growth of the national economy.

“For long small entrepreneurs in the country have been facing a financial challenge owing to lack of basic credit security requirements demanded by local financial institutions,” he stated.

Mohamed stated that the Micro and Small Enterprises (MSE) fund would be mobilized from government sources, development partners and also private sector financial players.

He made the remarks when he officially launched the Micro and Small Enterprises (MSE) Act 2012 in Nairobi. Former Labour Minister John Munyes had appointed directors for the Micro and Small Enterprise Authority (MSEA).   “We have not decided on the size of the fund yet but government will commit some money. We shall also be speaking to our development partners and also commercial banks to find out what role they can play in all this,” said Mohamed.

Read more at the Standard.