23 C
Kenya
Tuesday, November 24, 2020

Co-op Bank, Laikipia County to give Laikipia businesses Sh. 300mn loans

Must Read

From Survive to Thrive, working together for a better Africa

From Survive to Thrive, working together for a better Africa For most of us, 2020 has been a year of...

SportPesa now under probe over Sh. 30 billion money laundering

SportPesa Money Laundering: Kenya's leading sports gaming site SportPesa is soup over allegations of money laundering. According to a...

Leonard Mambo Mbotela begs for help with Sh. 1.1 million hospital bill

Popular veteran radio and TV presenter Leonard Mambo Mbotela is appealing for assistance in offsetting his bill at the...

Laikipia County Government and the Co-operative Bank of Kenya (Co-op Bank) have today launched the Laikipia Enterprise Fund. The fund has been launched with an initial kitty of Ksh. 300 million. The fund will offer affordable financing and business support to co-operatives and entrepreneurs in Laikipia County.

“The bank and the county government have entered into an Interest-Sharing and Guarantee Arrangement.  This is aimed at empowering co-operatives in Laikipia County through affordable financing and Consultancy Services, to enable them have sufficient liquidity for lending to members, and strengthen their management structures, and support over 7,000 entrepreneurs in Laikipia County recover from the challenges of the Covid-19 Pandemic by way of affordable financing and training,” Co-op Bank said in a statement.

Jamii Bora accepts Sh. 1 billion buyout bid from Co-op Bank

Borrowers will pay single-digit interest rates on the loans. This means that Laikipia borrowers will get the loans at the most affordable rates in Kenya today. “The low interest rate has been made possible by the interest-sharing arrangement, whereby the Laikipia County Government will be offering an interest subsidy of 5 per cent, thereby reducing the bank lending rate from 12.1 per cent to 7.1 per cent per annum for all borrowers,” said Co-op Bank.

In addition, borrowers will enjoy a reduced appraisal fee at 1.5 per cent of the approved loan amount. Co-op Bank will match three times the amount that the County Government will place in the Enterprise Fund, to ensure as many borrowers benefit from the opportunity. In addition to financing, the bank will make available the full basket of services that include digital banking tools, workshops for business training, and capacity-building consultancy services for co-operatives.

Repayment period for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives. “The county government shall undertake initial vetting of loan applicants as provided for in the Laikipia County Enterprise Fund Regulations 2020. Co-op Bank will further appraise for qualification,” said Co-op Bank. The Laikipia Enterprise Fund has already commenced operations.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

190,412FansLike
11,005FollowersFollow
243FollowersFollow
303SubscribersSubscribe
WhatsApp
Telegram

Latest News

Cops build house for Bungoma colleague who lost job after paralysis

Paralysis in Kenya: If you lost your job today, would your colleagues ever remember you? Well, a group of...

Uhuru phone call to Jacque Maribe that angered Royal Media Services

Uhuru Phone Call: In an interview with the latest edition of the True Love magazine, former Citizen Tv journalist and presenter has narrated how...

Trends Observed in Sports Betting in Africa

The industry of sports betting in Africa is an ever-growing industry and shows no signs of slowing down. More than half of Africa’s population...

Why I became a conman when I first moved to US – David the Student

A few years ago, Churchill Show's star David The Student moved to the USA. He was working as a taxi driver with the taxi...

Coronavirus Pandemic to Cost Football Billions in 2020

While cultural events are being called off and bars are closing again, the football industry is trying it’s best to avoid any worst-case scenarios...

More Articles Like This