This is a list of loans made available by the Youth Enterprise Development Fund. Youth Enterprise Development Fund is a government orgnization overseen by the Ministry of ICT, Innovation, and Youth Affairs.
It is one of the Vision 2030 flagship projects in the social pillar. It aims to develop job opportunities for young people through entrepreneurship. The fund offers teenagers interested in starting or expanding businesses simple and affordable financial and business development assistance.
Loans Offered By The Youth Enterprise Development Fund
1. Bid Bond And LPO/LSO Financing
Youth Enterprise Development Fund provides Bid Bond and Local Purchase Order/Local Service Order financing to adolescents participating in government tenders, under the AGPO program, and from other non-government procurement institutions.
The loans are available as follows:
Local Purchase Orders (LPO) Financing
- Individuals, registered groups, partnerships, and youth-owned and run businesses are eligible for the loan.
- Young people can borrow up to Kshs 5 million.
- The fund will cover 70% of the LPO cost.
- After 90 days, the loan bears a 1.5% interest rate.
- A 6.5% commission on the amount borrowed will be levied. Letters of undertaking, bank guarantees, and traditional security will be used to secure the loan.
Requirements
Be registered with the appropriate government agency.
A valid LPO issued by a qualifying agency.
The procurement organization agrees to pay the tender profits to the Youth Enterprise Development Fund Board.
Account information for the customer.
2. Vuka Loan
The financing is open to young people who want to establish or expand their businesses. The loan might be used for working capital or to purchase income-generating assets.
Vuka Start Up
- It is geared toward young people with alternative verifiable income and a business proposal.
- Young people can borrow up to Kshs 500,000.
- The loan is completely secured by traditional securitization.
Vuka Expansion Loan
The loan amounts range from Kshs 100,000 to Kshs 5,000,000.
It carries a 6% interest rate and a one-time management charge of 1%, which is deducted from the loan at payout.
One month grace period
Chattels, stock, and commercial assets will be used to secure a loan of Kshs 100,000. Loans in excess of Kshs 100,000 shall be secured by traditional security.
Vuka Asset Financing
- The fund will finance 70% of the acquisition price of the assets/equipment.
- In addition to the financed asset, additional security will be supplied.
- Chattels, stock, business assets, or guarantees will be used to secure loans of Kshs 100,000. Loans in excess of Kshs 100,000 will necessitate conventional security.
- In the case of motor vehicles, the fund will finance up to 90% of the purchase price of new cars. Used motor vehicles must be no older than 8 years old. The financed vehicle will be equipped with a tracking device and fully insured.
Repayment Period
Up to Kshs 100,000- 2 years
Up to Kshs 300,000- 3 years
Up to Kshs 500,000- 4 years
Up to Kshs 1000,000- 5 years
Above 1000,000- 6 years
Requirements
- In the case of partnerships, 70% of the partners should be between the ages of 18 and 34.
- All costs, including insurance, security perfection, valuation, charge/chattel registration, and