The Youth Enterprise Development Fund is a state corporation under the Ministry of Public Service, Gender and Youth Affairs. It was gazetted on 8th December 2006 and then transformed into a State Corporation on 11th May 2007. The Fund is one of the flagship projects of Vision 2030, under the social pillar. Its strategic focus is on enterprise development as a key strategy that will increase economic opportunities for, and participation by Kenyan Youth in nation-building. The Fund seeks to create employment opportunities for young people through entrepreneurship and encouraging them to be job creators and not job seekers. It does this by providing easy and affordable financial and business development support services to youth who are keen on starting or expanding businesses.
Eligibility and Criteria
- The loan is available to individuals, registered groups, partnerships and companies owned and run by the youth.
- Youth can access up to Kshs. 5 million.
- The Fund will finance 70% of the LPO amount.
- The loan attracts an interest of 1.5% after 90 days.
A commission of 6.5% of the amount borrowed will be charged. The loan will be secured using Letter of the undertaking, Bank guarantees, and conventional security.
- Advanced to youth with an alternative verifiable income and business plan.
- Youth can access up to Kshs. 500,000.
- The loan is fully secured by conventional security.
Vuka Expansion Loan
- From Kshs. 100,000 to Kshs. 5,000,000.
- Attracts an interest of 6% and a one-off management fee of 1% netted off from the loan at disbursement.
- A grace period of one month.
- Loan of Kshs. 100,000 will be secured using chattels, stock, and business assets. A loan above Kshs. 100,000 will be secured by conventional security.
Vuka Asset Financing
- The Fund will finance 70% of the value of the assets/equipment being purchased.
- Additional security will be provided in addition to the asset financed.
- Loans of Kshs. 100,000 will be secured using chattels, stock, business assets and/or guarantees. Loans above Kshs. 100,000 will require conventional security.
- In the case of motor vehicles, the Fund will finance up to 90% of the value of motor vehicles (including PSVs, tuk-tuks & motorcycles) being purchased and must be new. Used motor vehicles shall not exceed 8 years of age. The financed motor vehicle will be fitted with a tracking device and comprehensively insured.
Awards and Benefits
- The Youth Fund provides Entrepreneurship training and appropriate Business Development Services to youth engaging in business in order to ensure that they have adequate skills, and are able to identify and tap into business opportunities while embracing modern business management techniques.
- Provide loans to youth-owned enterprises
- Provide market support to youth enterprises
- Facilitate youth enterprises to develop linkages with large enterprises
- Provide trading premises and worksites
- Provide business development services to youth-owned enterprises
- Facilitate youth to obtain jobs abroad
How To Apply
To apply please click here