Youth Enterprise seeking funds from lending partners
Since it was set up in 2007, the YEDF has disbursed up to Sh2.8 billion through financial institutions and constituency offices. Photo/JOSEPH KANYI
The Youth Enterprise Development Fund is looking for additional on-lending partners, as it seeks to redefine its loans disbursement approach to cater for youth in the grassroots.
It has invited expression of interest from rural-based and sector specific financial institutions.
“The fund’s challenge has been that money advanced to current financial partners for lending is not reaching the grassroots as originally intended and there is need for additional institutions with strong community presence to come in,” said Umuro Wario, CEO of the fund.
He says sector specific institutions will also be instrumental in aiding youth exploit different business opportunities in different regions of the country.
The fund is also setting up a risk sharing arrangement to guarantee entrepreneurs who want loans of above Sh1 million.
“Under the credit guarantee scheme, the Youth Fund can give a cash security to the banks, enabling youth-focused enterprises in projects that create employment to a large number of young people get funding,” said Mr Wario.
The fund is now looking for a consultant to provide suitable technical input towards the development of the credit guarantee scheme model, and to propose the best mechanism for funding youth focused enterprises.
“We have been successful in funding youth-owned enterprises, but have been piloting on youth-focused businesses, thus the need for a different disbursing approach,” he added.
Since it was set up in 2007, the YEDF has disbursed up to Sh2.8 billion through financial institutions and constituency offices.
The loan amounts range between Sh50,000 and Sh1 million. The CEO says the repayment rate has been good, rated at 98 per cent in the banks.
