The Nairobi County Government has announced plans to disburse over Sh4 billion to micro and small enterprises (MSEs) over the next five years through its Biashara Stimulus Programme.<\/p>\n
As part of the initiative, a Sh50 million ward-based credit facility will be introduced to support budding entrepreneurs and established businesses.<\/p>\n
The County Cabinet Tuesday together with Governor Johson Sakaja resolved that this financial boost is aimed at reducing barriers to entry, offering affordable credit, and promoting innovation and business expansion across Nairobi.<\/p>\n
\u201cThe program addresses the critical gap in affordable credit, enabling businesses to expand and innovate,\u201d the cabinet said in a statement.<\/p>\n
The Biashara Stimulus Programme is designed to streamline access to financial resources and enhance business operations, making Nairobi a hub for entrepreneurs.<\/p>\n
The county plans to collaborate with financial institutions and strategic partners to bolster the program\u2019s impact. These partnerships will aim to leverage additional resources and expertise, ensuring the initiative’s success.<\/p>\n
A dedicated committee will oversee the program\u2019s administration to ensure transparency, monitor progress, and guarantee the effective use of funds.<\/p>\n
Special attention will be given to empowering youth and women, groups that often face challenges in accessing business financing.<\/p>\n
By prioritizing these underserved demographics, the program seeks to foster inclusivity in Nairobi’s business environment.<\/p>\n
\u201cThrough strategic use of funds and partnerships, the Biashara Stimulus Programme aims to create a self-sustaining cycle of business growth, enhancing job creation and economic stability across Nairobi,\u201d the county government said.<\/p>\n
The Programme comes as the national government considers stricter enforcement measures to recover defaulted loans from the Hustler Fund. Acting CEO of the Financial Inclusion Fund, Elizabeth Nkuku, revealed plans to deduct payments directly from defaulters’ Mpesa balances and mobile airtime.<\/p>\n
The government is seeking to recover Sh7 billion from an estimated 13 million Kenyans who have defaulted on Hustler Fund loans. Nkuku told the National Assembly\u2019s Special Funds Accounts Committee that most defaulters are capable of repaying their debts, citing data indicating they transact an average of Sh21,000 monthly.<\/p>\n
\u201cThe defaulters are people of means; they are simply unwilling to repay,\u201d she stated, noting that legal provisions for the deductions are under review.<\/p>\n
However, the proposal has sparked concerns about privacy and compliance with Kenya’s Data Protection Act, which limits government access to private data. The law requires court orders for institutions to compel telecommunications companies or banks to disclose customer information.<\/p>\n
The debate echoes past disputes, including opposition from the Law Society of Kenya (LSK) to a 2024 proposal allowing the Kenya Revenue Authority (KRA) access to taxpayers’ Mpesa and bank account details. LSK argued that such measures would undermine constitutional privacy rights.<\/p>\n