Caption: R-L_ Ngao Credit Acting Chief Commercial Officer Gilbert Tochi takes SME owner Maureen David through the Jijenge 90-Day Supplier Loan at Ngao Credit’s head offices. Businesses that have secured tender
Businesses that have secured tenders or supply orders but need working capital to fulfil them can access up to KES 4 million through Ngao Credit’s Jijenge 90-Day Supplier Loan.
The existing facility is designed to help small and medium-sized enterprises (SMEs) bridge the gap between the cost of fulfilling an order and receiving payment from the customer. It provides financing to purchase goods, pay suppliers and meet delivery deadlines without putting pressure on funds needed for day-to-day operations.
The facility provides between KES 100,000 and KES 4 million, depending on the value of the vehicle offered as security and the applicant’s ability to repay. Eligible 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 facility comes as access to credit for smaller businesses remains a challenge. The Central Bank of Kenya’s 2024 Survey Report on MSME Access to Bank Credit shows that the number of MSME loan accounts fell from 1.18 million in 2022 to 890,000 in 2024, while their share of total banking sector loan accounts declined from 8 per cent to 6 per cent.
The decline in MSME borrowing comes as businesses continue to face practical barriers when seeking finance, including lengthy processing periods, extensive documentation, collateral requirements and multiple assessment stages. For an SME working against a tender or supply deadline, delays in accessing working capital can affect its ability to purchase stock, pay suppliers and complete delivery on time.
Ngao Credit said Jijenge is intended to respond to this need by providing short-term financing for businesses with confirmed orders and a defined payment cycle.
The 90-day repayment structure allows borrowers to pay interest during the first two months, with the principal and final month’s interest payable in the third month. This gives businesses time to fulfil an order and receive payment before settling the principal.
For example, 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, it 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 facility and repayment period. Where a customer experiences a delay in receiving payment, the situation can be reviewed and, where appropriate, an alternative repayment arrangement considered.
Tochi said the facility is intended to support 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 or through its website and digital channels, including WhatsApp and Facebook.
