Kenyan mobile loan lender, Tala, has set aside 2 million shillings as a pilot grant meant to help micro, small and medium-sized enterprises that were adversely affected by the covid-19 induced economic fallout to get back on their feet.
Kenyan mobile loan lender, Tala, has set aside 2 million shillings as a pilot grant meant to help micro, small, and medium-sized enterprises that were adversely affected by the covid-19 induced economic fallout to get back on their feet.
When Covid-19 first hit the country, virtually every sector was hit. The government imposed a curfew and restriction of movements, businesses shut down and people lost their jobs. It is estimated that at least 2,000,000 people lost their jobs.
Since then, Kenyan MSMEs have been facing unprecedented income loss, high cost of doing business, and uncertainties about their future due to disruptions from the covid-19 pandemic. The majority of them will need a miracle to recover.
“We understand the pivotal role that MSMEs play to oil the wheels of our economy. They, however, remain disproportionately underfunded and with no financial assistance in most cases.”
Today more than ever, we are keen to provide these enterprises with a boost to help them get back what they have lost during this and the past year”, said Mr. Ivan Mbowa, Managing Director at Tala.
Mr. Mbowa added that Tala is committed to walking the talk with small business owners and helping them achieve their business goals through offering subsequent business skills training as part of the support to the businesses that will be part of the grant program, in addition to the grant funding.
“The future belongs to MSMEs and we need to help them position themselves for success as we hopefully begin to see an upward economic trajectory,” he added. Tala has been at the forefront of supporting Kenyans and SMEs with short-term loans.
The digital credit provider has continued to offer support to customers in this period. This initiative is a follow on the COVID-19 Rebuild Fund Initiative launched last year that saw the lender offer 0% interest loans to over 180 businesses offering essential services.
This is in addition to offering free financial coaching for all Tala customers in a bid to reduce the debt burden and help Kenyans survive and thrive through the economic crunch currently facing the country.