The government will create a Sh130 million revolving fund in 2017/18 financial year for lending to small and medium-sized enterprises (SMEs) in the leather industry.
Industry, Trade and Co-operatives Cabinet secretary Adan Mohamed yesterday said the funds will be sourced from a regional financial institution and the Kenya Industrial Estates (KIE).
“We are in the final stage of negotiations with the Eastern and Southern African Trade and Development Bank, commonly known as PTA Bank, for a Sh30 million loan.
KIE will commit from its annual budget Sh100 million as part of taming finance challenges small traders are grappling with,” he said. Addressing the media in Nairobi after launching a five-year strategic plan aimed at revitalising the leather footwear sector, Mohamed said the funds will be advanced at special rates below the market rate.