Laikipia Economic Stimulus Programme


Many businesses were affected by the declared Covid -19 pandemic across the country and Laikipia was no exception. It is in the wake of this pandemic that Laikipia county under the stewardship of H.E. Governor Ndiritu Muriithi initiated the Economic Stimulus Programme (ESP) so as to enable the Micro, Small & Medium Enterprises (MSMEs) remain afloat by way of providing them with capital, a subsidized loan that will be favorable and cognizant of the prevailing economic strains. Towards the realization of this, there was establishment of a fund, Laikipia County Business Stimulus Fund whose objectives include;


  1. To alleviate the negative effects of a declared pandemic, disaster, or significant economic contraction (recession) on Trade/Commerce within the County.
  2. To facilitate access of affordable credit to micro and small Enterprises within the County from commercial facilities by providing solutions which include negotiated financial subsidies.
  3. To allow the County Government to negotiate an economic stimulus package scheme or schemes with commercial facilities which include:
    • A loan guarantee scheme and
    • An interest sharing scheme


Partnership with Financial Institutions


This is a partnership between Laikipia County Government and Financial institutions to support Micro, Small & Medium Enterprises (MSMEs) access bank loans at a subsidized rate. The County Government of Laikipia has so far negotiated for an economic stimulus package with two financial institutions, namely Kenya Commercial Bank (KCB) and Cooperative Bank of Kenya. The partnership provides that, Bank lends its own money with interest charged on Loans shared between individual entrepreneurs and County Government of Laikipia.


Interest Subsidy Model


  1. Loans borrowed at KCB Bank is charged interest at 12.5% p.a but shared between individual borrower and County government. The County Government meets 5% of the interest, while the borrower is charged 7.5% p.a. The same arrangement applies to Self Help Groups (SHGs). For Cooperatives, The County Governments meet 6.5% of the interest while the borrower is charged 6% p.a.
  2. Loans borrowed at Cooperative bank, the interest is charged at 12.5% for loans below Ks 100,000 and 13% for loans above Ks 100,000. The county meets 5% of the interest while the borrower meets the remaining percentage depending on the amount applied. For cooperatives borrowing money from cooperative bank, they pay interest at 6.5% p.a while the county government pays 6.5% p.a. The cooperative has to secure there loan fully.


Loan Facilities


  • Working Capital
  • Asset Finance
  • Invoice discounting and Local Purchase Orders;( LPOs)
  • Group Loans
  • Agribusiness Loans


Disbursements so far across the county


Disbursement Range Nanyuki KCB Branch Nyahururu KCB Branch Total Amount (Million)
0-99 K 16 7 23 1.3
100-499 K 23 7 30 5.2
500-999K 5 5 10 5.3
1 M- 1,999,000 7 2 9 14.1
2M-3M 4 1 5 9.7
Over 3M 3 0 3 9.2
Total 58 22 80 44.8


For more information and feedback,

please contact the Fund Manager through:

Contact: +254727504368.

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