The Youth Enterprise Development Fund (YEDF) has extended the restructuring of over Sh50 million loans, so as to continue cushioning young people in business from the vagaries of the coronavirus pandemic.
Initially YEDF had announced in May the restructuring would last for three months where those offered loans would have a moratorium on repayment but based on a case-by-case basis on assessment of investment areas and the Covid-19 impact.
“We are being responsive to our clients who are the youth as the pandemic continues to spread,” said YEDF acting Chief Executive Benson Muthendi.
“Three months ago, we restructured the loans to offer the much needed relief to businesses owned by youth during this trying moment and we will review case by case on the need to extend.”
Speaking at his office in Nairobi, Mr Muthendi said YEDF continued to assess the impact of the Covid-19 pandemic on the youth-owned enterprises, especially those it had financed.
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“The board will meet and ratify new measures to ensure that our customers are cushioned and continue to grow during this health crisis,” he said Muthendi.
The relief on loan repayments also included a temporary suspension of listing with credit reference bureaus of any youth-owned enterprise whose loan account falls overdue, effective April 1, 2020.
“YEDF management has continued to provide financial literacy services and support using online and non-contact platforms, considering cases requiring loan restructuring as long-term options and enhancing sensitisation,” said Muthendi.
When the pandemic hit the country in March, Central Bank of Kenya loosened the loan repayment rules, giving commercial banks an opportunity to restructure up to over Sh350 billion loans with clients to cushion them from business disruption.
Muthendi said despite the uncertainty of business due to the pandemic, young Kenyans were still requesting for funding