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Nakuru Sh 125 million cheap loans kitty for small scale traders
Nakuru Governor Susan Kihika delivers her speech during the launch of the Nakuru County enterprise and co-operative revolving development funds at ATC Soilo on May 29, 2025. She said her government has so far disbursed Sh100 million.
Small-scale traders and members of cooperatives in Nakuru have received a boost after the county government established a Sh125 million kitty to offer them low-interest loans to boost their businesses.
The traders and members of cooperatives will access cheap loans from the kitty dubbed Nakuru Enterprise and Cooperatives Revolving Fund, established by the county government to support the growth of small businesses and cooperatives in the region.
Governor Susan Kihika launched the Nakuru Enterprise and Cooperative Revolving Fund over the weekend, at the Nakuru Agricultural Training Center (ATC) in Soilo, in Nakuru City.
Of the Sh125 million set aside, Sh100 million is for cooperatives and Sh25 million for small-scale traders, promising that the amount will increase gradually.
"I urge the small business people, especially mama mbogas, boda bodas, market women and farmers, to take the cheap loans, with interest below the market rates, to finance their businesses. We have already set aside Sh25 million and the amount will progressively increase. Cooperatives will access up to Sh5 million," said Ms Kihika.
Small-scale traders will receive loans of between Sh50,000 and Sh200,000 at an interest rate of 8 percent per annum, whereas members of cooperatives will access credit of between Sh200,000 and Sh5 million, at an interest rate of 6 percent.
To operationalise the kitty, Governor Kihika has inaugurated a six-member board to help run and oversight the fund.
The fund board, chaired by Hillary Korir, is made up of eminent business people, including Ms Linda Kageha, James Mucheru, Bashir Abdulrahman, and Paul Kirui.
Small-scale traders can access the cheap loans as individuals or as registered groups with certificates, group bank statements, group by-laws and must have been active for at least one year.
For cooperatives, a certificate is required, an audit report, Annual General Meeting minutes, borrowing power, a business proposal and a bank statement.
Self-help groups can also access the fund.
100 groups
On Thursday, the Nation learnt that so far, over 100 groups of registered small-scale traders have qualified, receiving about Sh10 million.
Six cooperatives in the region have already consumed Sh21.7 million.
Nakuru County Trade Executive Stephen Kuria expressed hope and urged the board to exercise integrity and transparency in managing the kitty.
“This is a new dawn for our traders who have long faced impediments of high-interest rates by lenders on loans for expansion or establishment of their small businesses. We encourage traders and especially women and youth, who are willing to do business, to visit our department so that we can assist them,” stated Mr Kuria.
Ms Kuria noted that with Nakuru now a city, entrepreneurs should take advantage of such avenues of financing to tap into the many opportunities arising from the city status.
Only traders and cooperatives doing business in the county will benefit from the fund.
The enterprise fund was appropriated by the county assembly and is administered by the department of trade.
In 2019, former Governor Lee Kinyanjui signed into law the Nakuru County Enterprise Fund Bill into law, paving way for the establishment of such a fund for traders.