The government has unveiled a new digital financial inclusion initiative called Biashara loan, to provide micro-SMEs access to loans at a low-interest rate.
According to President William Ruto, the fund will target Micro Small and Medium enterprises (MSMEs) with needs of capital ranging from Kes10,000 and Kes200,000.
"We are now launching the Individual Micro Enterprise Loan Product," Ruto stated
President Ruto launched the new product during the celebrations of World Women's Day at the Kenyatta International Convention Centre in Nairobi.
The Biashara loan is part of the Hustler Fund Personal Loan Product, a revolving fund that provides credit to small businesses and individuals who have no collateral or formal banking history.
The Biashara loan product has two components, individual and group. The individual micro-enterprise loan product will lend between KES 10,000 and 200,000 at 7% interest calculated pro-rata or daily.
The loan has flexible repayment terms of 1, 3, 6, or 9 months, with a maximum term of one year.
How to register
To register for the Biashara loan, customers need to dial *254# on their mobile phones and select their business category (Agriculture, Trade, Manufacturing, Service Providers). T
You will also be required to enter the business registration number and KRA pin linked to the business.
Eligibility Criteria
- To be eligible for the Biashara loan, customers must;
- Be a Kenyan citizen of 18 years of age and above
- Have a Kenyan Valid National ID
- Have an active SIM Card from any Mobile Network Operator
- Have opted for Hustler Fund Personal Loan Product
- Have a business number for a business registered on the Business Registration Service (BRS)
- Have a KRA pin linked to the Business on BRS
The Biashara loan is expected to boost economic growth and create employment opportunities for millions of Kenyans who run micro-SMEs across various sectors.
