Nakuru County Launches KSh 125 Million Low‑Interest Loan Scheme to Empower Small Traders

The Nakuru County government has unveiled a KSh 125 million loan facility designed to provide affordable credit to small‑scale traders and micro‑businesses across the county. The initiative, announced by Governor Susan Kihika, aims to bridge the financing gap faced by informal sector operators who often rely on high‑cost loans. Eligible groups can access financing at favourable rates, with immediate disbursement to selected businesses already underway.
The scheme is anchored through two separate loan funds: the County Enterprise Fund and the Cooperative Revolving Fund. The Enterprise Fund will offer loans ranging from KSh 50,000 to KSh 200,000 at an interest rate of about 8 per cent annually, while the Cooperative Fund will provide larger advances—up to KSh 5 million—at around 6 per cent. The funds are channelled in partnership with Kenya Commercial Bank (KCB), which will handle the loan processing and disbursement. Governor Kihika emphasised that the programme is aimed at youth, women, boda‑boda operators, market vendors and other grassroots enterprises currently underserved by formal banking.
The launch has been met with broad approval from business associations and community groups who say affordable credit is long overdue. Some traders, however, are cautious, noting that successful rollout will depend on transparent selection criteria and timely disbursement. Analysts say the scheme could bring significant gains if it stimulates business growth and job creation, but they warn of potential risks such as defaults or misuse if oversight is weak. The collaboration with a major bank gives the programme credibility, yet reassure‑and‑monitor mechanisms will still need to be robust to protect public funds.
Looking ahead, the county government expects to roll out the scheme across all sub‑counties and track performance through repayment rates and business growth metrics. Officials say that consistent borrowers may access larger loans in future, offering a pathway to scale up operations. If successful, the initiative could serve as a model for other devolved units seeking to boost grassroots economic empowerment. The next six to twelve months will be critical in determining whether the fund can meaningfully lift small‑scale traders into more sustainable and formalised enterprises.