Small and Medium Enterprises(SME)traders from Kisii County have been encouraged to take loans from Saccos and other interest-rate friendly financial institutions to finance expansion of their businesses.
John Nyakundi,the executive secretary of Patanisha Sacco Society based in Nyamira has tipped SME traders in the region on the importance of going for soft loans from Saccos to finance and expand their business ventures instead of stagnating at one stage of their business ventures.
Speaking in Kisii town, Nyakundi gave an example of his Sacco which he said targeted SME traders in both Kisii and Nyamira counties where members benefit from loans multiplied thrice their share savings to facilitate them expand their businesses.
Nyakundi disclosed that the Sacco which started its operations last year has attracted about 106 members,out of which 26 have been given loans at 1 per cent interest per month to expand their businesses.
"As a manager of Patanisha,we are giving loans to members thrice their share holding capacity and they have two months grace period before they start servicing their loans,"disclosed Nyakundi
Nyakundi clarified that the Sacco's operations will soon be extended to Kisii County to bring on board more SME traders commonly known as Jua Kali traders to take advantage of the Sacco's low interest rates to apply for loans to finance their businesses.