The Mountain Journal
Amica Sacco founded four decades ago has entered into a partnership with Kenya Development Corporation (KDC) and secured a Sh300 million loan earmarked to promote Micro, Small, and Medium Enterprises (MSMEs).
The government parastatal earmarked Amica Sacco as a crucial partner after it managed to assist hundreds of small and medium businessmen and farmers in reorganizing themselves in the wake of the COVID-19 pandemic.
Trade and Industrialisation Cabinet Secretary Salim Muvrya who witnessed the handing over of the Sh300 million cheque to the management of the Sacco in Murang’a town, said the government was keen in the promotion of the business enterprises.
“Amica Sacco has set the pace for benchmarking for other organisations that will in the future partner with KDC in Supporting the Access to Finance and Enterprise Recovery (SAFER) Project designed to address the financial challenges faced by MSMEs) in Kenya,” said the CS.
Safer project has a budget of Sh7 billion under the management of KDC.
In the function attended by Murang’a Governor Irungu Kang’ata, Amica Sacco Chief Executive Officer Dr. James Mbui said the organisation has been supporting the small traders who account for 55 percent of the loans disbursed.
Sixty-one percent of the loans, he said, were channeled through the agriculture programmes.
Mbui said the sacco loan book has grown from Sh1.1 billion in 2014 to Sh7.1 billion this year, with prospects to grow to more than Sh10 billion.
“The Sacco has 500 agents spread in Murang’a, Kiambu, and Nairobi who have been supportive towards the growth,’ said Mbui.
Amica Sacco has more than 192,000 members, where 61 percent are farmers, 18 percent are traders, and 21 percent are in the consumer sector.
KDC Director General Norah Ratemo said This partnership is a testament to our commitment to ensuring that financial support reaches those who need it most. By channeling these funds through Amica Sacco, we are empowering them to extend tailored financial products and services to local businesses, thereby fostering growth and resilience in Murang’a County.
“ The facility will enable Amica Sacco to provide crucial support to local businesses as they recover and expand, spark economic activity, and drive overall community prosperity,” she said.
Amica Sacco Chairman Jediel Kahungu said the collaboration between the sacco, the KDC, and the Ministry of Investment, Trade, and Industrialisation will be of much benefit to the residents.
“ We shall continue creating more networks for the interest of the members who are in dire need of financial services from Amica Sacco,” said Mr Kahungu.
