According to Tala, the grant will support Micro, Smalll Medium Enterprises which have been adversely affected by COVID-19 fallout and put them on a recovery path.
Tala Managing Director Ivan Mbowa said the fund will ensure MSMEs get back on their feet after facing unprecedented income loss, high cost of doing business and uncertainties about their future due to disruptions from the pandemic.
“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 Mbowa.
The funds will be used to offer business skills training in addition to the grant funding to small and medium enterprises that will be part of the grant program.
“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.
The program which will be opened to qualifying MSMEs will be launched in October and is part of the COVID-19 Rebuild Fund Initiative launched last year that saw the lender offer 0% interest loans to over 180 businesses offering essential services.
The firm says it has also offered free financial coaching to its customers in order to become responsible borrowers during the pandemic.