Mombasa County rolls out interest-free loans for small scale traders
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The Mombasa County Government is rolling out an empowerment initiative dubbed ‘STAWISHA’ under the county revolving fund to support small-scale traders.
STAWISHA revolving fund seeks to provide accessible and interest-free financing to market traders and other small-scale operators and micro-entrepreneurs to grow their businesses.
The empowerment initiative provides a valuable opportunity for small-scale traders to access seed capital without complicated requirements or formal business registration barriers.
The devolved government has begun sensitizing residents in the six sub-counties about the STAWISHA fund, which will offer interest-free, repayable loans to people determined to start or grow small businesses.
County officials are going round the sub-counties’ 30 administrative wards, creating awareness and explaining how the programme works, who qualifies and the steps traders must follow when applying. The initiative is designed to empower petty traders with minimal start-up capital and simplified application requirements.
Among those eligible are traders selling roasted groundnuts, potatoes, bhajias, fruits and fresh juice, as well as vendors dealing in porridge, ice blocks, roasted maize and fish.
Governor Abdulswamad Shariff Nassir says the interest-free revolving fund is designed to help small-scale traders access financing without paying interest on principal loans.
The loans target micro-business operators, including young people, women and members of marginalized communities, to assist them in building sustainable livelihoods. Unlike a grant, beneficiaries will be required to repay the money to benefit more people.
Governor Nassir said the empowerment initiative is expected to provide an alternative source of financing for micro-entrepreneurs who may be unable or unwilling to take conventional loans because of high interest charges.
He said the first phase will introduce the ‘Biashara Mtaani’ loan with eligible applicants able to borrow seed capital ranging between Sh8,000 and Sh15,000 without interest.
Governor Nassir was speaking after visiting Jomvu and Changamwe sub-counties to monitor firsthand the ongoing public sensitization for the STAWISHA Programme under the Mombasa County Revolving Fund.
Nassir said every deserving resident should have an equal opportunity to access capital, grow their businesses, create jobs and build a better future.
He said the sensitization forums are intended to familiarize residents with the fund before applications are processed, particularly those who may need assistance navigating the online system or understanding the eligibility requirements.
The Governor reaffirmed his administration’s commitment to creating an enabling environment where businesses can thrive, attract investment, and empower more citizens to become employers.
“We are taking economic empowerment directly to the people because when small businesses thrive, Mombasa and its people prosper,” he said, adding that targeted traders are those who have no access to formal financial institutions.
He said the new initiative removes traditional funding barriers making it easier for small-scale traders to access capital.
Nassir says the economic programme will in the long run help bridge the funding gap for grassroots entrepreneurs across Mombasa by offering a practical pathway to financial empowerment and business growth.
“The new financing model is intended to keep the fund in circulation and enable more residents to access the empowerment kitty over time,” he said, adding that the process requires minimal documentation to ensure ease of access.
Nassir expressed his administration’s unwavering commitment to supporting small-scale traders as a strategic pathway to poverty reduction, job creation, wealth creation and accelerated socio-economic development.
By Hussein Abdullahi
Reporting originally appeared via Kenya News Agency. Read the full source for additional context.