ICT sector in Kenya calling for loan review

The Kenya ICT Board launched loan project focused on improving the information communication and technology (ICT) sector via Pasha Association of Kenya. The association has however revealed that the terms of loan repayment must be reviewed and phrase it as “very short yet the outcome is low.”

Kitengela Pasha Centre’s chairman Geoffrey Gitau said entrepreneurs are finding terms imposed on loan repayment unrealistic as the duration is short — to allow for smooth implementation of the government project branded as Pasha (Digital village).
The project, sponsored by the World Bank with KSh320 million (US$ 3,801,600), is targeted at promoting computer literacy as well as allow for easy Internet access.
Loan is given to people who meet the ICT Board terms for duration of three years, at an interest rate of 10.5 percent per annum, to facilitate Kenya Transparency Communication Infrastructure Project (KTCIP).
Kitengela Pasha Centre manager Josky Mwathe urged the government to lengthen the loan repayment period so that business section may grow.
Information and Communication Permanent Secretary Bitange Ndemo told the Daily Nation that some senior officials have failed pay the loans they received from the government and more people need to be trained on how to run the business since “there is something wrong.”
Ndemo concluded by citing Internet service providers and mobile network operator’s failure to agree on a legal contract to offer cheaper services.
Late last month, Family bank released KSh28 million(332,640) to 26 investors for ICT development in different counties in the country while the first phase begun in April 2011 with Ksh 48 million (570,240) given to 37 entrepreneurs.
KTCIP is a vision 2030 project that aspires to allow easy access and implementation of e-government to stir socio-economic growth.

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