advertisement
Market News

Biashara sacco seeks to help SMEs overcome financing woes

cash
Biashara Society Sacco has a capital base of about Sh1.5 billion. FILE PHOTO | NMG 

A lack of collateral and loan defaulting are some of the main challenges affecting businesses, a sacco management expert has said.

Biashara Society Sacco chairman Joseph Kamau Njamuku said the women and youth are the worst hit.

Speaking when the Nyeri-based sacco opened a branch in Nairobi on Tuesday, he said the sacco had initiated different plans to address the challenges.

Mr Njamuku said one of the approaches is through asset financing where those interested save 30 per cent of the initial cost of an asset and later funded to buy it with the collateral being the asset itself.

He said the sacco had formed a special team to monitor its customers and guide them to ensure they are able to service their loans and avoid defaults.

advertisement
 

Mr Njamuku said youth and women get loans at interest rates of 10.5 per cent compared to 12 per cent they charge other members.

He said the sacco, which was established in 2006 by less than 200 business owners in Nyeri town, now has more than 125,000 with a capital base of about Sh1.5 billion.

advertisement