Small-scale traders urged to utilise county trade loans

By Peter Ochieng

Small-traders in Bungoma county have been urged to exercise prudence in utilising trade loans, provided by the devolved unit.

Speaking in Mihuu Ward on Friday, Bungoma governor Kenneth Lusaka insisted that the funds are not grants but loans, which must be repaid at a lower interest rate to sustain the county's revolving fund.

He cautioned traders against misusing the financial assistance, stating that past failures to repay loans had negatively impacted the sustainability of the program.

“Have a clear plan before taking the loan. Let it be a blessing, not a burden,” advised the county boss.

He made an assurance that his administration would ensure only deserving traders receive the loans through a rigorous vetting process, noting that the county was on the right path, citing recent performance ratings in various sectors.

He affirmed his commitment to fulfilling his development agenda for the people of Bungoma, while dismissing political distractions.

As reported by Nairobi Review this week, the governor rolled-out a Sh40 million trade loan initiative aimed at supporting local traders and the jua kali sector across its 45 wards.

The revolving fund is expected to benefit 4,500 traders, offering them access to affordable credit while linking them to mainstream banks, SACCOs, and microfinance institutions to help grow their businesses.

“This initiative represents a cornerstone in our mission to uplift Micro, Small, and Medium Enterprises (MSMEs). Having pioneered trade loans in 2014/2015, I am confident these loans will enable traders to expand and enhance their operations,” he said.

He urged beneficiaries to invest the funds wisely to foster business growth, stressing that responsible loan management would ensure long-term development.

“It is my hope that these loans will be invested in ways that generate both individual and community prosperity.”

The governor highlighted that the program operates within a legal framework, urging traders to make timely repayments to ensure sustainability.