Murang’a County has started a Sacco to provide interest-free loans to small-scale business people from the county.
Governor Mwangi wa Iria said his administration in partnership with local financial institutions targets to invest Sh1 billion in Wachuuzi Sacco by end of the current financial year to cushion local traders from the negative impacts of the Covid-19 pandemic.
The governor noted that the Sacco, which has more than 40, 000 members, on Thursday issued cheques to more than 5, 000 traders who had earlier applied for loans.
He said the Sacco is targeting to provide credit to small-scale traders including hawkers who hardly can access loans from established financial institutions.
“We will be issuing loans to members of the Sacco on a monthly basis. The money is meant to support our small-scale business people to boost their enterprises. The loans will not accrue interests but the beneficiaries will be required to repay their loans on a daily basis,” he added.
He said the beneficiaries will be required to service their loans to help the Sacco give out credit facilities to others.
Wa Iria said Wachuuzi Sacco has opened branches in each sub county adding officials will vet and register genuine traders and those who are in dire need for financial support.
Traders like those who have invested in car-washing, beauty shops, hawkers among others. It is hard for them to get loans from banks or other financial institutions; but having their Sacco, they can save and access credit facilities,” Wa Iria said.
The governor encouraged those who have ventured in small income generating projects to join the Sacco and save the little they can afford.
By Bernard Munyao