SASRA To Lend “NAWIRI” Loan to MSMEs
The impact of the Sacco movement in enabling economic growth and development of a nation cannot be underestimated. Saccos in different sectors have enabled millions of Kenyans to access credit with reasonable interest rates and a flexible repayment plan.
Underscoring the same impact and reiterating it, The Chief Executive Officer (CEO) of the Sacco Societies Regulatory Authority (SASRA) – SASRA is a statutory Authority charged with the responsibility to license, supervise and regulate all DTS (Deposit Taking Saccos) & specific NDTS (non-deposit taking Saccos) Peter Njuguna, noted that Saccos have been at the center of the realization of SAFER (Supporting Access to Finance and Enterprise Recovery (SAFER) Project. He added that the same initiative of Saccos has contributed enormously to the Bottom-up Economic Transformation Agenda (the BETA plan).
“The SAFER project will break down financial barriers for MSMEs through policy reforms,
innovative financing, and capacity building. We are confident that through this initiative, we will
ignite a spark of economic revitalization across Kenya,” he noted.
The Government of Kenya, through the Kenya Development Corporation (KDC), the Ministryof Investment, Trade, and Industry (MITI), and the National Treasury, launched the
Supporting Access to Finance and Enterprise Recovery (SAFER) Project.
The project seeks to increase access to financial services, enhance capabilities, support the recovery of Micro, Small, and Medium Enterprises (MSMEs) after COVID-19, and foster long-term
growth.
SAFER will provide innovative financial solutions and support to MSMEs through a combination
of market instruments channeled via the private sector and the Government.
The funds will be channeled from the National Treasury to an apex financial institution (KDC),
which will on-lend to several Participating Financial Institutions (PFIs), including Licensed Micro Finance Institutions, Central Bank of Kenya Licensed Digital Lenders and SACCOs, who in turn
will on-lend to MSMEs. Formally referred to as Nawiri wholesale Loan, KDC will disburse this
facility to SASRA-regulated SACCOs, Licensed Micro Finance Institutions and Tier III
commercial banks focused on lending to MSMEs.
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