Kenya Youth Fund Has Created 300,OOO jobs

THE Youth Enterprise Development Fund has disbursed loans to at least 200,000 businesses amounting to Sh7 billion over the last six years, it said yesterday.
The fund which has been disbursing loans to businesses owned by individual youths and youth groups up to a Sh50,000 maximum claimed it has also created over 300,000 jobs since its inception in 2006.
However, it said, it has faced numerous challenges that are threatening its efficiency in uplifting businesses owned by young people.
"Inadequate disbursement and repayment infrastructure in some parts of the country pose a major challenge to disbursment and loan repayment especially in the arid and semi arid areas," said Evans Semelang'o yesterday.
He was speaking at a Nairobi hotel during the fund's status update meeting and launch of a new product dubbed vuka that is tailored for existing youth businesses that want a bigger loan than the Sh50,000 maximum.
"Traditionally our loan products have focused on youth whose businesses are in the lower stratum.Consequentlt youth with fairly established enterprises have felt alienated by our services," said acting Fund CEO Catherine Namuye during the launch.
The Vuka loan product will give credit ranging between Sh100,000 and Sh2 million repayable at an eight per cent annual interest rate.
"Majority of those who take this loan will be above the youth age by the time they complete repayment. It will help them vuka to commercial banks," she said, noting that it has a flexible repayment period.
Yesterday, the Fund gave out cheques amounting to Sh15 million to various youths under the vuka product line.
On his part, Semelang'o said the Fund needs more credit officers, an improved policy on the fund, an increased network of financial structures in the country to act as loan disbursement intermediaries and increased recurrent expenditure budget to help the Fund employ more people.