Small and medium-sized enterprises (SMEs) that have secured tenders or supply contracts but face working-capital constraints can access up to KES 4 million through Ngao Credit’s Jijenge 90-Day Supplier Loan.
The facility is designed to help businesses bridge the gap between the cost of fulfilling an order and receiving payment from customers, enabling them to purchase goods, pay suppliers and meet delivery deadlines without disrupting funds set aside for day-to-day operations.
Under the facility, eligible businesses can borrow between KES 100,000 and KES 4 million, depending on the value of the vehicle provided as security and their ability to repay the loan.
Ngao Credit said approved customers can access funds on the same day once their documentation, security and repayment capacity have been assessed and approved.
“Securing a tender or supply order is an important opportunity for a business, but the ability to deliver depends on having working capital available at the right time. Jijenge helps businesses bridge that gap so they can purchase supplies, fulfil orders and meet their contractual obligations,” said Gilbert Tochi, Acting Chief Commercial Officer at Ngao Credit.
The financing comes amid continued challenges in accessing credit among Kenya’s smaller businesses.
According to the Central Bank of Kenya’s 2024 Survey Report on MSME Access to Bank Credit, the number of MSME loan accounts declined from 1.18 million in 2022 to 890,000 in 2024. Their share of total banking sector loan accounts also fell from 8 per cent to 6 per cent during the period.
SMEs continue to face barriers when seeking financing, including lengthy processing periods, extensive documentation, collateral requirements and multiple assessment stages.
For businesses operating under strict tender or supply deadlines, delays in securing working capital can affect their ability to purchase stock, pay suppliers and deliver orders on time.
Ngao Credit said the Jijenge facility is intended to address this gap by providing short-term financing to businesses with confirmed orders and defined payment cycles.
The loan has a 90-day repayment structure that allows borrowers to pay interest during the first two months, with the principal and final month’s interest payable in the third month.
The arrangement is intended to give businesses time to fulfil their orders and receive payment before settling the principal amount.
For instance, a business borrowing KES 1 million at an interest rate of 7.5 per cent would pay KES 75,000 in interest in each of the first two months. In the third month, the borrower would pay the KES 1 million principal together with KES 75,000 in interest.
Applicants are required to provide a vehicle logbook, National ID, KRA PIN and 12 months of bank or M-Pesa statements for credit assessment.
The vehicle offered as security must have comprehensive insurance, with the cost of the insurance eligible for financing as part of the loan.
Ngao Credit also assigns customers a relationship officer to guide them through the application and repayment process.
The lender said customers who experience delays in receiving payments can have their circumstances reviewed and, where appropriate, an alternative repayment arrangement considered.
Tochi said the facility is aimed at supporting businesses while maintaining responsible lending standards.
“We want customers to understand the facility and borrow within their repayment ability. Our relationship officers remain available throughout the repayment period to help customers manage their facility,” he said.
Ngao Credit, which began operations in 2009, specialises in logbook-backed lending alongside other credit solutions.
Businesses seeking to apply for or learn more about the Jijenge 90-Day Supplier Loan can contact Ngao Credit on 0709 650 000 through its digital channels, including WhatsApp and Facebook.
