Kisii County Governor James Ongwae has told community groups in the area, to form cooperative societies to access loans from the county government.
The governor said only cooperatives, micro finance institutions and banks, were mandated by law to issue loans and to charge interests, and therefore the groups were not qualified to be advanced money by his government.
Ongwae said the county government had put aside Sh30 million for every ward in the county to be given as loans to boost small scale businesses.
“Without being in cooperatives groups can only get a maximum of Sh500, 000 as revolving fund, which is inadequate to share among many people,” he said.
He was addressing Community Health Workers and groups of youth and women, in Kisii Central ward, on Thursday
He said another advantage of transforming groups into cooperatives, was to facilitate the marketing of products and services.