Funds set aside to help youths finance tenders

Devolution Cabinet Secretary Anne Waiguru (right) and Kisii Governor James Ongwae (centre) during the opening of the Kisii Huduma Centre on April 21, 2015. PHOTO | BENSON MOMANYI |

What you need to know:

  • Huduma centre opened and groups get cash.
  • Waiguru says cash available immediately as she lobbies for increase in her budget.

Kenyan youth will access up to Sh25m in loans to finance tenders they win at both the national and county levels.

Devolution Cabinet Secretary Anne Waiguru said that youth, women and people living with disabilities will use local purchase orders (LPO) to apply for loans to the Youth Fund.

She said her ministry came up with the initiative after many youths and women could not raise funds to finance the contracts they were awarded by the government.

“Our youths who had a hard time financing contracts because they did not have collateral to secure loans from banks can now use LPO funding to access loans without any security,” said the Cabinet Secretary.

The LPO is the first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.

Ms Waiguru was speaking during a tour of Kisii County where she released cheques worth Sh7.5 million to various women and youth groups from nine sub-counties.

She also inaugurated a Huduma Centre in Kisii town in an event attended by Kisii Senator Chris Obure and Kitutu Chache MP Richard Onyonka.

She urged youths in the country to take advantage of the LPO funding initiative to bid for government tenders.

MORE MONEY

“There are youths that win tenders but lack funding. However, they can now access loans from the Youth Fund to bail them out,” she said.

The Devolution minister said there is need to sensitise the youth and other groups on loans available in state-backed financial institutions.

“We shall roll out civic education programmes to sensitise more women and youth countrywide and thus improve the uptake of funds,” she said.

She said her ministry will request Sh6 billion during the next financial year to help finance selected groups and address youth unemployment in the country.