Kilifi County has launched a groundbreaking partnership with local banks to finance small business owners eyeing county tenders. Governor Gideon Mung’aro’s administration has teamed up with Kenya Commercial Bank and Rafiki Micro Finance Bank to offer affordable loans to business people for county projects.
The initiative, known as the Wezesha Fund, aims to empower youth, women, and various groups within the county to finance tenders they win. Governor Mung’aro highlighted the challenges faced by locals in accessing capital for projects and assured them of the Fund’s support. He emphasized that the Fund would disburse credit facilities at reasonable interest rates, addressing the financial needs of tender winners.
The County has allocated KES 200 million for the 2023-2024 financial year to the two banks, enabling local business people to access a pool of Sh. 1 billion. The partnership allows for loans of up to Sh. 1 billion. Beneficiaries will only pay a one-off four percent management fee, making the loans essentially interest-free.
The Fund will be accessible at the ward level, with county officials and community representatives vetting potential beneficiaries. Governor Mung’aro assured that those who win tenders will automatically qualify for the Fund, provided they have accounts with either KCB or Rafiki Micro Finance.
The banks will also provide financial management training to beneficiaries during the loan period. KCB Managing Director, Anastacia Kimutai, emphasized the importance of financial training to ensure prudent investment of the funds.
Rafiki Microfinance bank Manager for the Mtwapa branch, Samuel Mburu, reiterated the bank’s commitment to supporting beneficiaries to grow their businesses. He highlighted the bank’s role in ensuring that businesses in Kilifi County thrive and circulate wealth within the county.
The launch of the Wezesha Fund marks a significant step towards promoting local businesses and boosting economic growth in Kilifi County. The initiative seeks to empower entrepreneurs and ensure that county projects benefit local communities.
