Small and Medium-sized Enterprises (SMEs) are set to benefit from a new KES 1 billion initiative by the Smallholders Irrigation Schemes Development Organisation (SISDO). The company, which targets livestock farmers and small-scale traders, has adopted a new strategy that aims to increase its lending capabilities.

Speaking during the company’s Annual General Meeting over the weekend, SISDO Chairperson Professor Roselyn Gakure said that the firm had distributed over KES 300 million worth of loans within the first half of this year. This is twice as much as the loans given out during the same period in 2011. The Kenyan-based microfinance company has since set aside KES 1 billion for loan disbursement to SMEs.

The company was formed as an NGO 12 years ago under the advice of the Ministry of Agriculture. Its mandate was to develop irrigation schemes for small-scale crop farmers. The lender has since grown to accommodate dairy farmers and small businesses through the provision of credit. It targets its clients based on their lack of access to financial services from formal institutions like banks and insurance companies.

Prof Gakure said that SISDO has already begun working on plans to further expand its reach. The firm intends to increase its loan book from 270 million to 2.5 billion within the next five years.