Bungoma County has re-launched a revolving fund to empower traders in the informal sector.
The Sh40 million initiative seeks to offer affordable loans to some 4,500 traders in 45 wards.
At least 300 traders have already submitted their applications awaiting a response.
The maximum a trader can be given from the fund is Sh100,000 and the minimum is Sh5,000 for normal business loans.
The financing of LSO and LPOs for small contractors can go up to Sh200,000
The beneficiaries will also be linked to commercial banks, Saccos and microfinance institutions to help grow their businesses and create jobs.
Governor Kenneth Lusaka rolled out the programme in the 2014/2015 financial year with Sh 100 million as seed money.
The programme was suspended in 2019 to create time to review the regulations and recover money from defaulters.
While launching the fund at Webuye Municipal Hall on Monday, Lusaka said the initiative’s main goal is to empower small-scale traders.
“The fund’s main aim is to build the capacity of SMEs, provide affordable loans to traders, link SMEs to mainstream banks, Saccos and Microfinance institutions and increase revenue streams,” the governor said.
“This initiative represents a cornerstone in our mission to uplift Micro, Small, and Medium Enterprises. Having pioneered trade loans in 2014/2015, I am confident they will enable traders to expand and enhance their operations,” Governor Lusaka said.
He urged beneficiaries to invest the funds wisely to foster business growth, stressing that responsible loan management would ensure long-term development.
“I hope these loans will be invested in ways that generate both individual and community prosperity,” he added.
Lusaka said the programme operates within a legal framework and urged traders to make timely repayments to maintain sustainability.
“We have put in place regulations to recover defaulted loans, and I encourage all beneficiaries to honour their repayment schedules to keep the programme sustainable and boost the County's revenue,” he concluded.
