Kenyan businesses to benefit from Ksh 200b fund – KBC

Kenyan businesses will benefit from a 200 billion shillings fund by Transform Africa leadership which also targets five other African nations.

The fund benefit small and medium enterprises in health, finance, agriculture and the real estate sector in Kenya.

Head of the Fund Dr. Rollan Robert says already two start-ups have received 150 million shillings as commitment funding.

The business climate in Kenya has been adversely affected by the outbreak of the coronavirus in March this year.

In May this year, the Central Bank of Kenya warned that 7 out of 10 small businesses were facing imminent collapse due to cash-flow problems.

Since then there has been calls for lenders to loosen their restrictions on lending to this class of borrowers.

Transform Africa Initiative says there is an urgent need to cushion Kenyan SMEs with business mentorship programmes as they deal with the double problem of COVID-19 and constricted access to funding.

Head of the Initiative Dr. Rollan Robert says already 2 billion dollars are ready for investment in Kenya, South Africa, Rwanda, Botswana Malawi and Zambia.

The fund has already signed funding agreement with two Kenyan SMES, one in health and the other in the agriculture.

Robert says, they are targeting more than 700 businesses in Africa with the fund.

He is further urging Kenyan companies to be innovative to remain afloat as the COVID-19 pandemic upends business environment globally.