Technology and services firm Bosch Group and Equity Bank have concluded a memorandum of understanding geared at providing the jua kali sector with access to Bosch power tools through micro loans to grow their businesses.
The strategic alliance seeks to secure a micro-financing solution at a competitive interest rate ensuring ease of access to the full range of Bosch power tools.
Speaking during the launch, Vonjy Rajakoba the Vice-President, Sales Power Tools at Bosch Group noted that the Jua Kali, slang for informal sector, artisans recognised Bosch power tools for their quality, durability and back-up service.
Under the partnership, the two institutions will provide financial literacy skills as well as build the necessary capacity required for artisans in the jua kali industry to be competitive. The partnership will allow local customers to access Bosch Group’s tools for effective use in their businesses. It targets stockists, retailers, industries, schools, construction industries, technical institutions and universities.
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Equity Bank’s Director of Corporate and Small to Medium Enterprises (SME) Banking, Rohit Kumar Singh, noted that, “the bank’s key focus on the SME business sector is to empower our business partners to build and grow their businesses. The process offered by Equity Bank is not only transparent, but efficient and easy to access.”
According to World Bank Group economic 2016 report, Kenya’s economic performance remains solid, with the growth rate expected to improve from 5.6% in 2015 to 5.9% in 2016 and is projected to rise further to 6% in 2017. The recent Kenya Economic Update (KEU) report shows that Kenya is creating more jobs now, but mainly in the informal sector. Notably, nine million youth will join the labor market in the next 10 years. Given the scarcity of formal sector jobs, youth will continue to find jobs in the small household enterprises.
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