Kisumu County Governor Jack Ranguma on Friday gave traders loans worth Sh4 million to develop and expand their businesses.
The loan which mirrors the national government’s Uwezo fund was given to 80 traders with the county government promising to increase the amount in future.
This means that every trader was issues a cheque of Sh50,000 towards expansion of their businesses. The fund is supposed to be revolving fund where those who have been given return it for the others to be given loans too.
“This initiative will cushion, empower and increase credit worthiness of our traders in various fields,” said Ranguma.
The traders are expected to return the money after 12 months with an interest of eight per cent.
The governor said he was focused in ensuring that small and micro-enterprises are empowered to reduce the rate of unemployment in the county and that he is aiming to increase the amount to Sh100 million to help more traders.
“This money should be properly utilised and used for its intended purpose,” said Ranguma, warning the traders of defaulting as that would spoil for other traders who are also expected to be loaned using the same amount.
The governor said he was interested in improving trade in Kisumu and SMEs are the way to go.