MSME COVID-19 RECOVERY AND RESILIENCE PROGRAM

The Kenya National Chamber of Commerce and Industry (KNCCI) in partnership with the Mastercard Foundation are implementing the Micro, Small and Medium enterprises (MSMEs) COVID-19 Recovery and Resilience Program.   The aim of this program is to assist the MSMEs to ensure business continuity and sustainability. The target demography for this program will include the following: –

  1. Youth-owned (18-35 years)
  2. Women-owned (18-70 years)
  3. Enterprises that support large number of youths (18-35 years)

The MSMEs need to have been in existence for at least one year and have been impacted by the COVID-19 pandemic. The sectors we are targeting are Hawkers, Jua Kali & Boda Boda, Fashion Industry, Retailers and Restaurants.

The MSME finance facility is envisaged in the form of a short-term interest free and zero fee concessional loan.  The loan amount sizes are KES 20,000 -30,000 and are repayable in two (2) months. The facility is a revolving fund, available to repeat borrowers upon repayment of the loan within two months.

KNCCI is implementing the program through its forty-seven (47) county chapters spread across the country. Click Here to find the address of your nearest KNCCI office.

We do not fund businesses that:

  1. Sell drug-related substances including alcohol and tobacco,
  2. Manufacture weapons and are involved in war-related activities,
  3. Are in gambling and betting sectors,
  4. Are in sex-related industries, or
  5. Have ownership by state or parastatal actors.

Request to be contacted

    Ensure you have the following documents at the start of the application:

    • Copy of completed fund application form
    • Copy of owner’s national ID (attach IDs of all Partners/Directors)
    • Copy of KNCCI membership certificate
    • Copy of business registration (where applicable)
    • Copy of CR 12 (for registered companies)
    • Bank or M-PESA statements or proof of trade payables (rent payments, license fees, employee salaries etc) for the last one (1) year.
    • Personal M-Pesa number /Paybill/ Till number

    There are two (2) ways of applying for the facility. Choose only one (1) of the following options:

    1. Online application. Fill out the application Click here
    2. Manual application. Download the application form here, fill and submit to your nearest KNCCI office Download here.
    1. Business MUST either be a micro or small enterprise:
      1. Micro enterprise (less than 10 employees and annual turnover below Ksh.500,000)
      2. Small enterprise (less than 50 employees and annual turnover below Ksh.5 million)
    2. Business MUST be owned by youth (18-35 years), women (18-70 years) or enterprises that support a large number of youth (18-35 years)
    3. Business MUST be a member of Kenya National Chamber of Commerce and Industry (KNCCI)
    4. Owner of the business MUST have a valid Kenyan national ID
    5. The business MUST have been operating and viable at least one (1) year prior to the outbreak of COVID-19
    6. Owner of the business MUST be prepared to accept terms and conditions of the facility, which include use of funds for the intended purpose and repayment of the loan within two (2) months.
    7. Business MUST NOT be:
      1. Involved in sale of drug-related substances including alcohol and tobacco;
      2. Manufacturing weapons or involved in war-related activities;
      3. In gambling/betting sectors;
      4. In sex-related industries;
      5. Have ownership by state or parastatal actors.

    CHECKLIST

    • Copy of completed fund application form
    • Copy of owner’s national ID (attach IDs of all Partners/Directors)
    • Copy of KNCCI membership certificate
    • Copy of business registration (where applicable)
    • Copy of CR 12 (for registered companies)
    • Bank or M-PESA statements or proof of trade payables (rent payments, license fees, employee salaries etc) for the last one (1) year.
    • Personal M-Pesa number /Paybill/ Till number

    What does the partnership between KNCCI and the Mastercard Foundation aim to achieve?

    With support from the Mastercard Foundation COVID-19 Recovery and Resilience Program, KNCCI will support MSMEs through a loan facility with the aim of supporting them to overcome the impact of the COVID-19 pandemic.   The loans will be administered by our partners Grassroots Business Fund (GBF) and Fourth Generation Capital (4G Capital).

    Who is eligible to apply?

    Micro, Small and Medium Enterprises (MSMEs) that have been impacted by COVID-19 pandemic and:

    1. Are youth-owned (18-35 years)
    2. Are women-owned (18-70 years) or
    3. Support a large number of youth (18-35 years)

    Which sectors are you funding?

    The intervention targets Hawkers, Jua Kali & Boda Boda, Fashion Industry, Retailers and Restaurants.

    Are there sectors or industries that are not eligible?

    Yes. We do not fund businesses that:

    1. Sell drug-related substances including alcohol and tobacco,
    2. Manufacture weapons and are involved in war-related activities,
    3. Are in gambling and betting sectors,
    4. Are in sex-related industries, or
    5. Have ownership by state or parastatal actors.

    How do I apply for the facility?

    To apply for the facility, visit your nearest KNCCI office in any of the 47 counties. Applications can also be made online: https://www.kenyachamber.or.ke/kncci.msme-fund/

    Do I need to attach any documents in my application?

    Yes. In addition to the completed application form, you will be required to attach:

    Copy of completed fund application form

    Copy of owner’s national ID (attach IDs of all Partners/Directors)

    Copy of KNCCI membership certificate

    Copy of business registration (where applicable)

    Copy of CR 12 (for registered companies)

    Bank or M-PESA statements or proof of trade payables (rent payments, license fees, employee salaries etc) for the last one (1) year.

    Personal M-Pesa number /Paybill/ Till number

    How long will it take to process my application?

    Your application will be processed in approximately 21 days or more depending on how soon your application gets to us

    How do I know if my application is successful?

    Successful applicants will be notified by 4G Capital during disbursement.

    How will successful applicants receive the disbursement?

    Disbursement is through mobile-based money transfer service M-Pesa

    How much does my business qualify for?

    The average loan size is Ksh. 20,000 – 30,000

    What can I use the loan for?

    The loan is intended to solely solve your immediate business cashflow problems.

    How much is the application fee?

    The application is free of charge

    How much interest is charged on the loan?

    The interest rate is 0%

    Is the loan repayable?

    Yes the loan is repayable, the duration of the loan is two (2) months

    How do I repay the loan?

    Repayment is through mobile-based money transfer service M-Pesa

    Do I need to place any collateral?

    No. The facility is collateral-free

    Do I need to sign any agreement?

    Yes. Successful applicants will be required to sign an agreement before disbursement of funds

    Do I qualify for another loan after repayment?

    Yes. There is a possibility to qualify for an additional loan after repayment.

    I am not in business, can I apply for the facility?

    The facility is only available to people with businesses

    I am not a member of KNCCI, can I apply for the facility?

    No, the facility is only available to members of KNCCI. Please get in touch with your nearest KNCCI office

    I closed my business; can I apply for the facility?

    Yes, if you meet the eligibility criteria requirements

    I want to start a business; can I apply for the facility?

    No. The facility is only available to businesses that have been existence for at least one (1) prior to the COVID-19 pandemic

    Ksh 600 Million kitty to give small traders a lifeline

    Never in recent memory has so much uncertainty hang over economic growth. But as the country gradually returns to pre-pandemic times, there are tantalizing hints that the economic and social traumas that members of the informal trade sector (MSMEs) faced during the past few months; may soon give way to a new period of economic prosperity.

    For this realization however, one crucial factor comes into play. It is the availability of affordable credit that will be the magic elixir for MSMEs
    sustainability and productivity during and after the COVID-19 crisis. But because of the inherent risk and the nature of Micro and Small enterprises, it is particular for them to access credit facilities from mainstream financial institutions. The National Treasury and Private sector players early on adopted a collaborative approach to create innovative financing solutions for a sector that provides daily bread to nearly 60% the country’s households. The KES 600 Million Kenya National Chamber of Commerce and Industry (KNCCI) – Mastercard Foundation’s COVID-19 Recovery and Resilience Kitty is one of such solutions. Through this Kitty, Youth and Women (18 -70) owned Micro enterprises throughout the country have been  able to access revolving short-term , interest free loans of between KES 1000 to KES 31,200. During the past few weeks, Project Coordinator Louis Kabucho has been conducting on-ground sensitization sessions across the country to encourage members of the informal trade sectors to utilize this kitty as it a real opportunity to bounce back economically. So far, over KES 100 Million in interest-free has been disbursed. In Kericho County for  instance, Ms. Kabucho reiterated that being listed on the Credit and Reference Bureau (CRB) should not be a deterrent for MSMEs applying for this
    loans, so long they can demonstrate that are they servicing the debts owed. MSMEs who wish to be part of this program can take advantage of the special category KNCCI membership fees of KES 250 per year, payable through M-PESA business No.
    616255, Account No. (County of Business operations) In Kiambu County, during a colorful ceremony officiated by Kiambu Governor H.E Dr.
    James Nyoro, MS Kabucho announced that KNCCI had also forged a partnership with the Kenya Investment Authority (KENINVEST) and Zetech University to offer training, mentorship and capacity building sessions for MSMEs within the county. On its part, the Mastercard Foundation in partnership with KNCCI is working on anational-wide digital skills program to help members of informal trade sector learn ideal
    book keeping practices and to smoothen operations and supply chains.