Nairobi County Unveils Biashara Fund, Promising SME Lifeline with Single-Digit Loans
In a significant move aimed at bolstering the backbone of its economy, the Nairobi City County government has officially launched the Biashara Fund, a new financial scheme designed to provide small and medium-sized enterprises (SMEs) with affordable, single-digit-interest loans and a pledge of streamlined, transparent processes. Governor Johnson Sakaja, presiding over the launch at City Hall, declared the initiative a game-changer intended to unlock growth, spur job creation, and formalize thousands of businesses that have long struggled with prohibitive credit costs and bureaucratic hurdles.
The fund specifically targets SMEs operating within the county’s 17 sub-counties, with a focus on youth, women, and persons with disabilities-led enterprises. Key details of the plan include capped interest rates significantly below market averages, flexible repayment periods tailored to business cash flows, and a simplified online application portal to reduce red tape. For too long, our jua kali artisans, market traders, and innovative startups have been hamstrung by a lack of capital, stated Governor Sakaja. The Biashara Fund is built on the principle of inclusion and trust, with a transparent process from application to disbursement.
Reaction from the business community has been cautiously optimistic. John Kamau, chair of the Nairobi Central Business District Association, welcomed the initiative but emphasized the need for consistent implementation. The promise of affordable credit is exactly what we need. The proof, however, will be in how quickly and fairly these funds reach the mwananchi on the ground, not just those with connections, he remarked. The county has assured that an independent committee will oversee applications to ensure fairness and mitigate political interference.
The long-term outlook for the Biashara Fund hinges on its execution. If successful, analysts predict it could stimulate local economic activity, increase county revenue through formalized businesses, and serve as a model for other devolved units. However, challenges such as ensuring robust credit assessment to minimize defaults and maintaining transparency will be critical to watch. As the application window opens, the county’s ability to deliver on its promises will determine whether this ambitious fund truly becomes the catalytic force for Nairobi’s vibrant, yet often financially constrained, SME sector.