The Nairobi County government has allocated a budget of Sh100 million for a revolving fund known as the “Biashara Fund” similar to the Hustler Fund run by the national government.
Biashara fund aims to support small businesses in Nairobi owned by women, people living with disabilities, and the youth in all 85 wards of the county.
Godfrey Akumali, the Chief Officer for Trades and Markets, said the county has already established a framework for identifying beneficiaries of the “Biashara Fund.”
“It is a revolving fund that is targeting the traders in Nairobi and we want to focus on the women and the youth because they are the ones who are doing business. We have also identified the persons living with disabilities as another target group,” Akumali told Nation.Africa.
“There is a need for capital for these businesses. Instead of them depending on shylocks who often charge high-interest rates, we decided to give them the fund to boost their businesses. We are looking at it as a social investment in our women and youth. We want to empower them so that they can be in charge of their future and have the ability to grow their businesses,” he added.
Similar to the Hustler Loan Fund, the “Biashara Fund” will be launched in multiple phases to ensure its effective implementation.
“The only difference with the one at the national government is that ours will be targeting only those who own small businesses within the county. It is not open for everyone,” Akumali explained.
In addition to financial support, the county will provide traders with financial literacy training and business skills before receiving the funds for their businesses. Subsequently, they will be allocated stalls where they can operate their businesses.
Akumali also mentioned that the “Biashara Fund” will have an interest rate ranging from 8 percent to 10 percent, and the borrowers will have a fixed repayment period of up to six months.
He said the fund’s implementation will commence in the coming months.
