Small-scale business people from Kisii town have asked leading micro-finances outlets to reduce their interest rates and penalties for individual defaulters as a way of helping them boost their businesses.
Speaking on Monday at Kisii Hotel during a meeting between small business owners and micro-finance managers, they expressed their desire to continue working with micro-finance institutions but urged them to revise interest rates and some rules regarding lending of money.
“We are always ready to work with micro-finances because they are available and affordable to us. However, we would like to urge you people to revise interest rates per annum, the 14% charged within our bracket is not really affordable. We would suggest that it is reduced to one digit,” said Simon Ongeri.
“Some penalties such as dealing with defaulters who have willingness to pay back are very retrogressive and should be revised as well. Otherwise we believe that micro finances will boost the economy of the nation by empowering small scale businesses,” Ongeri added.
Officers from Faulu Kenya and Kenya Women Finance Trust said they will table the grievances to their respective groups before convening a similar meeting to give feedback. The two micro-finances also expressed their desire of working together.
“Some of the issues you are raising here are vital and need to be tabled for a common solution in our respective managements. We will give you a feedback after a discussion with other executives. These two money-lending are ready to work together as a team,” said Erick Maina of Kenya Women Finance Trust.