Youth Enterprise Fund (YEF) to use Sharia law to hit Sh1 billion loan uptake in Mombasa

Youth Enterprise Fund (YEF) boss Josiah Moriasi. Youth in Mombasa will start accessing sharia compliant loans from the YEF to maximise the potential of the county's Sh1 billion uptake. (PHOTO" COURTESY)

Youth in Mombasa will start accessing sharia compliant loans from the Youth Enterprise Fund (YEF) to maximise the potential of the county's Sh1 billion uptake.

YEF boss Josiah Moriasi said the despite the county's huge potential, to date only Sh246 million has been disbursed from the fund.

This in turn benefited 23,000 youth.

Moriasi said whereas the YEF loans do not attract interest, the fund will be fast tracking the rolling out of an enhanced Sharia compliant loan product for individual youth.

"I wish to confirm that we have started on this process and are finalizing consultations with the relevant stakeholders. We expect this initiative to have a sudden positive impact on loan uptake," said Moriasi.

Moriasi was speaking in Mombasa over the weekend where he consulted with stakeholders in a bid to improve the Fund's services to the youth. He had also issued cheques worth Sh1 million to benefit 90 youth.

He noted that the region has not performed well in terms of uptake and repayment of loans citing drug abuse, unemployment and radicalization as some of the challenges facing the youth.

"The region has not reached its potential and can do much better. For instance, Mombasa County has to date received a total of Sh 246 million from the Fund which has benefitted 23,000 youth. This is against a potential of over Sh 1 billion," said Moriasi.

Moriasi announced that a mechanism is already in place to ensure that loans are processed within two weeks of application.

"This will not only ensure that the youth receive money when they need it, but will also be an incentive to others to apply," said Moriasi.

From the discussion held with the county's officials, it was passed that the Fund will work jointly with communities, national government institutions, county governments, private sector to step up sensitization programmes at the coast so that all the youth have information on opportunities available to them.

"There will be enhanced entrepreneurship training in the region to equip the youth with the requisite knowledge, skills and attitudes to run enterprises. We shall also provide market support to enhance the sustainability of youth owned enterprises," Morasi said.

He added: "The Fund will seek partners to carry out business opportunity mapping. We shall disseminate this information so that our financing is focused on viable opportunities."