Central Bank of Kenya Governor Patrick Njoroge. Five commercial banks unveiled a Central Bank of Kenya-backed loan facility targeting small businesses on May 20, 2019. PHOTO | FILE | NATION MEDIA GROUP
Five banks launch Sh30,000 SME loans
Five commercial banks have unveiled a Central Bank of Kenya-backed loan facility targeting small businesses.
Micro, small and medium enterprises (Msmes) will be able to access unsecured loan ranging between Sh30,000 and Sh250,000 from the new loan product dubbed “Stawi” through their mobile phones.
The loan has a repayment period of between one and 12 months and an interest of nine per cent per annum.
The other charges to be collected upon disbursement are facility fees of four per cent, insurance cost of 0.7 per cent and an excise duty at 20 per cent of the facility fee.
The facility will initially be managed by Commercial Bank of Africa (CBA), Cooperative Bank of Kenya (Co-op Bank), Diamond Trust Bank Kenya (DTB), KCB Bank Kenya and NIC Group.
The scheme will see good borrowers rewarded with cash based on their borrowing profiles.