Busia County has disbursed Ksh.111 million to promote the growth of cooperatives and Small and Micro-Enterprises (SMEs).
The funds will enhance access to affordable credit and boost economic development.
At least 92 cooperative societies have benefited from the Cooperative Fund, receiving loans totaling Ksh.106 million, with 386 individual traders getting hold of Ksh.5.8 million through the Trade Fund – according to the County.
“These funds have been there, but previously, there was a management problem. People were using it for political benefit. This time, we are prioritizing the needs of our people and the development of our county,” said Busia Governor Paul Otuoma.
Challenges in Loan Repayment
This even as the Governor worried that there are bad loans in the County, running to the tune of Ksh.100 million.
“The challenge we are facing is loan defaulting. To date, about Ksh.100 million has yet to be repaid from previous disbursements. This calls for the new team to adopt better strategies to prevent a recurrence.”
The county has put in place loan recovery measures and is exploring partnerships with financial institutions to expand funding opportunities and enhance fund management.
