Twiga Foods suppliers and customers will receive Sh300 million from the government to help them grow their businesses.
President William Ruto stated after the opening of the Twiga Foods Distribution Facility in Tatu City in Ruiru, Kiambu County, that the loan is aimed at the firm’s 140,000 suppliers.
Suppliers will benefit from an annualized interest rate of 8% rather than 1% per day, lowering the cost of servicing credits.
“The Sh300 million that you lend to your 140,000 suppliers and customers across Kenya. We are going to make that amount of money available to you so that they can be able to borrow at lower interest rates and hopefully increase their earnings,” President Ruto said.
“That Sh300 million CS Chelugui make sure that the customers of Twiga have access to Hustler Fund and instead of them borrowing at 1 per cent per day, they should be able to borrow at 8 percent per year,” the Head of State added.
The agri-tech firm aggregates demand and streamlines logistics in the distribution of farm produce such as bananas, onions, tomatoes, potatoes, mangoes, and cabbages to small-scale vegetable vendors in city estates, making products more affordable and increasing vendor sales.
Twiga serves approximately 33,000 vendors per month, with an average of seven orders per week per vendor. Twiga also operates in the counties of Uasin Gishu, Embu, Meru, Kirinyaga, Machakos, Nakuru, and Kiambu.
Since its inception in 2014, the company has raised billions of shillings in capital from international investors such as the International Finance Corporation through equity and loan transactions.
