The Kilifi county government has launched the Sh200 million Wezesha Fund, a Micro-Finance loan facility designed to help Micro-Small Medium Enterprises (MSMEs) in the region.
The program will be carried out through a collaboration agreement between the devolved government and two financial institutions, Rafiki Micro Finance and Kenya Commercial Bank (KCB).
The two institutions will offer a total of Sh1 billion in loans to successful borrowers, who will be charged a 4% account management fee for each successful disbursement.
Governor Gideon Mung’aro told the press after launching the program that the funds are an increase from the previous regime when only Sh116 million was disbursed under the Mbegu Fund.
“Through Wezesha Fund, we have now allocated Sh200 million in this financial year up from the previous financial year’s allocation of Sh116 million and now with this deal from the two financial institutions, we will have the capacity to loan up to a billion shillings since our partners will match every of our shilling with four shillings to make it five.
KCB Managing Director Annastacia Kimtai stated that the bank collaborated with Kilifi County to launch the revolving fund to assist MSMEs.
“The proposition is in line with our MSMEs offering agenda, which is anchored on the need to strategically engage the MSME market by seeking to find solutions to overcome the everyday challenges they continue to face,” she said shortly after signing the agreement.
Ms. Kimtai stated that through the Wezesha Fund, KCB and Kilifi County will develop policies and structures to support the fund’s utilization and sustainability, as well as to facilitate capacity building for entrepreneurs via an interest-sharing and guarantee model of operations.
“I am excited to note that through Wezesha, we now have an opportunity to progressively offer our support to SMEs replicating similar efforts that we have rolled out in Nakuru, Kiambu, and Laikipia Counties respectively,” she said.
