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MESPT give small businesses Ksh2bn to boost productivity

The Micro Enterprises Support Programme Trust (MESPT) has entered into an agreement with the Kenya Association of Manufactures (KAM) to support small businesses mainly the agri-business sector.

The funds will be spread over the next five years to enhance the manufacturing value chain of the small and medium enterprises under the business sector programme.

“We have signed a deal with the Kenya Association of Manufacturers to ensure the funds benefit processors especially in agri-business”, says MESPT chief executive Jeff Karingo.  He said the trust had received funding from the Danish Government, which would be distributed through its partner intermediaries.

The funds will also be used to build capacity for financial service providers including micro-finance institutions, savings and credit and community-based organizations. The funding targets all sectors although agriculture takes the lion’s share of the funds.

“Our rates are very competitive at eight to 12 per cent for agriculture businesses and 10 to 12 per cent for business loans”, Karingo says. The arrangement applies the micro-finance lending model of groups loans, which had boosted repayment rate that now stands at 97 per cent, Karingo added.

MESPT has also received Sh400 million from the European Union which has been used to reduce post harvest losses in horticulture and fisheries sectors. The funds have also been used to build capacities of rural financial intermediaries and to support the leather and handicrafts sectors.

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