Youth enterprises reap from Sh6b youth fund

By NICHOLAS WAITATHU

More than 157,000 youth enterprises have been financed by the youth fund to the tune of Sh6 billion. Youth Enterprise Development Fund (YEDF) chairman Gor Semelang’o  (pictured) said since its inception in 2006, more than 200,000 youthful entrepreneurs have been trained and 300,000 jobs created. 

Semelang’o said credit extension to youth is assuming new levels as market dynamics also change.

This includes the young population explosion. “Our mission has focused on ensuring the high levels of unemployment in the country are reduced and the youth are exposed to emerging growth opportunities in the national economy,” said Semelang’o. 

He noted that the fund has enhanced its operation network by developing new products in the film industry, agriculture, and music. Last week the fund launched a Sh300 million loan product to finance film production. Youth will be given loans to produce films for local and international markets.

Low repayment rates

 The youth will borrow the loans at the rate of eight per cent for a repayment period of between one and six years. The amount per film ranges between Sh500,000 and Sh25 million. 

The youth fund boss noted that the extension of credit to youth in the country is expected to increase as more youth-based savings and credit co-operative societies (saccos) are formed. Development partners have  also helped youth to form saccos.  Lack of financing has been cited as the main stumbling block to the start of businesses among the youth.

But 25 youth saccos have been formed under the umbrella body of National Youth Bunge. The saccos have been receiving building capacity and financial support from development partners such as United Nations Development Programme, International Labour Organisation, and USAID. The US development organisation  will advance Sh480 million to 25 youth saccos in Coast, Nairobi, Western, Nyanza, Central and Rift Valley regions this year to help young people engage in economic activities.

County focus

The money will be channelled through the National Co-operative Business Association (NCBA), which is the national voice for co-operative enterprise in the US. NCBA has helped start over 3,000 youth groups in six counties. Some youth groups have come together at the county level and started county youth saccos that offer credit to each other for business. 

“Our focus this time is to grow the capital of youth saccos to enable them advance credit to more young people, thus broadening the wealth creation bracket,” NCBA Country Director Joyce Wafula said.

 YEDF acting Chief Executive Officer Catherine Namuye noted that the youth fund has helped the formation of 14 youth saccos across the country recently.