Unaitas Kenya has received KSh1 billion funding from Dutch private equity firm, Oikocredit, to fund small businesses in the agribusiness space.
The firms said the funds will be repaid over six years, allowing them to offer loans to over 5,000 farmers’ groups and cooperatives, individual farmers, farm input dealers and transporters.
The funds are part of the two firms’ efforts to help firms recover from an economic fallout caused by the COVID-19 pandemic, leading to massive layoffs, pay cuts, and shutdowns amid a decline in sales and customer traffic.
The firm noted that it would factor loan risk profile of businesses before lending out, in order to protect the investment at a time of heightened defaults rates that have soared to 14.2% at the end of April 2021 from 12.5% at the beginning of the pandemic (March 2020).
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