State shells out Sh4.6b to traders

Wednesday, May 24th, 2023 07:43 | By
Tomato-traders at the Nakuru Wakulima Market. Photo/Print

The National Treasury has disbursed a total of Sh4.64 billion under the Credit Guarantee Scheme that was initiated during the Covid19 pandemic.

As of March 31, 2023, a total of 2,997 credit facilities had been dispatched with small enterprises accounting for 57 per cent of the supported businesses falling into this category.

Micro-sized businesses constituted 29 per cent of the facilities, while medium-sized enterprises represented 14 per cent.

“This distribution underscores the scheme’s focus on providing inclusive financial support to businesses of all sizes, recognizing the vital role played by small and medium enterprises (SMEs) in driving economic growth and employment,” Treasury said.

Pandemic credit deal

This amount  is indicative of the level of assistance provided to businesses that were struggling to access credit from traditional financial institutions during the pandemic.

The scheme has successfully bridged the funding gap, enabling enterprises to continue their operations and preserve jobs.

The report says that 1,005 facilities totalling Sh1.2 billion have been successfully repaid. This repayment rate demonstrates the resilience and commitment of the supported businesses to regain their financial stability and fulfill their obligations.

“The success of the Credit Guarantee Scheme has not only provided a lifeline to struggling businesses but has also contributed to the broader economic recovery efforts in Kenya,” said Treasury in a statement.

By ensuring that enterprises have access to the necessary capital, the scheme has helped stimulate business activities, boost productivity, and create a conducive environment for investment and growth.

As the country continues to navigate the post-pandemic landscape, the Treasury says it will sustain and expand the Credit Guarantee Scheme.  Efforts are underway to streamline processes, increase outreach and awareness, and forge partnerships with financial institutions to ensure continued support for businesses across various sectors.

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