In a bid to support small businesses in Nairobi, Nairobi Governor Johnson Sakaja is set to spend Sh100 million towards the establishment of the Biashara Fund.
The Biashara Fund will be a revolving fund aimed at supporting businesses owned by women, people living with disabilities, and the youth across the 85 wards.
The amount was revealed by the CEC for Finance Charles Kerich while making the budget statement reading last week.
“To support traders within the county, and transact their business in a dignified manner, Sh100 million has been allocated for the establishment of a revolving Biashara Fund for micro, small, and medium enterprises,” he said
In his manifesto, Governor Sakaja had pledged to turn Nairobi into a city of opportunity.
In this pillar which focuses on prospering residents, Sakaja said his administration would build 20 new markets around the city to accommodate over 543 hawkers, deliver a digital unified single business permit and implement a Sh50 million Biashara fund per ward.
Fast forward, the county has already established a framework for identifying beneficiaries of the “Biashara Fund”.
It will be similar to the already rolled out Hustler Fund run by the national government.
However, the only difference is that the fund is not open to everyone, only those who own small businesses.
Biashara Fund will have an interest rate ranging from 8 percent to 10 percent, and the borrowers will have a fixed repayment period of up to six months.
According to the county, the fund will boost the businesses instead of the owners depending on shylocks.
The ‘kitty’ will also empower the business owners which will lead to the expansion of their businesses in future.
Like the Hustler Loan Fund, the “Biashara Fund” will be launched in multiple phases to ensure its effective implementation.
In addition to financial support, the county will provide traders with financial literacy training and business skills before receiving the funds for their businesses.
Also, they will be allocated stalls where they can operate their businesses.
About the Hustler Fund, Nairobi which boasts the highest number of subscribers.
Last month, it was placed fourth with a repayment rate of 73.8 percent.
Nairobi is also leading in the list of counties with the highest registered groups, 10,957 followed by Trans Nzoia which boasts of 9,792 groups. Meru stands at number three with 9, 647 groups.
