Nairobi Kenya January 18, 2011 - Kenya Gatsby Trust on Tuesday announced the sale of its controlling shares in its financial services project, Biashara Factors Ltd to Soko Letu Ltd, a local firm that seeks to promote small and medium enterprises (SMEs)
The Biashara Factors Ltd, which finances suppliers to medium sized companies has a lending portfolio valued at over Ksh 60 Million. Factoring is a much needed financial product which is likely to add impetus to the growth of SMEs in the country.
The Soko Letu Ltd investment in Biashara Factors Ltd is expected to broaden the client base as well as strengthen the management capacity of the organization.
Speaking during the signing ceremony, Kenya Gatsby Trust (KGT) chairman, Mr. Bill Lay said the sale was part of the trust’s mandate to incubate business projects in a bid to provide a conducive environment for sustainable wealth creation.
“We are particularly proud to achieve core mandate of incubating market solutions and successfully spinning them off to private investors, ’said Mr. Lay.
Speaking during the ceremony, Soko Letu Ltd Executive Director, Mrs. Anne Mutahi said her company’s acquisition of the Biashara Factors Ltd project would add muscle to the enterprise thereby enabling it to further advance its capacity to support SMEs through specialized financial services.
“We are committed to offering market-led business solutions by providing sustainable market sites and innovative financial services to SMEs,” sad Mrs. Mutahi.
She added: “By this acquisition we will now be able to provide specific financial services that will go a long way in supporting young enterprises and start-ups.
Mrs. Mutahi noted that recent research had shown that provision of a cash-flow system that shortens payment terms is supportive to the growth of many start-ups and SMEs especially in the fast moving and consumer goods (FMCG) sector.
These developments come in the wake of increased clamor for sound financial services that are aimed at supporting SMEs. Analysts and economic pundits have touted this as key to achieving economic growth in the country.