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 legal fees, will be borne by the borrower.
3. Agri-Biz Loan
The loan is open to young people who want to start or expand agricultural companies. It is open to individuals, registered groups, partnerships, and youth-owned and run businesses. Young people can borrow up to Kshs 2 million. Although there is no interest on the loan, a management charge of 5% of the loan amount will be deducted at the time of payout.
The loan has a three-year repayment duration. Loans of up to Kshs 300,000 will be fully secured with traditional securities.
Requirements
- Applicants must get inputs or equipment from approved vendors and provide invoices or quotations.
- Licenses must be current and copies must be provided.
- Where relevant, a genuine supply contract and copies of the same must be produced.
- A proposal for beginning an agricultural venture is required.
- Relevant business records, including a sales agreement, must be provided.
- Please provide 6 months of validated bank statements.
- Provide confirmation of ownership of the land where farming will take place, lease agreements for leased land, or owner consent to utilize the land.
- Two guarantors are required, one of whom must be employed in the industry. In the absence of this, the applicant is required to furnish traditional security.
- Applicants for start-ups must be formed in groups or have alternative income or conventional securities.
4. Incubator Loan Product
The Youth Enterprise Development Fund loans egg hatching incubators to young people.
5. Constituency Based Loans
The financing is intended to assist people in starting income-generating initiatives at the constituency level.
Constituency based loans include;
Rausha
Rausha loans are for groups and individuals and have a maximum loan amount of Kshs 100,000. It has a three-month grace period and is repaid in 12 equal monthly installments.
Inua
It is a loan for group business expansion. It is advanced for groups that run businesses. Inua loans are available to groups that have fully redeemed their rausha or other institution loans. The loan amount starts at Kshs 200,000, and organizations can continue up to Kshs 1,000,000.
There is a one-month grace period on the first Inua loan. Following loans do not have grace periods. Chattels will be used to secure loans up to Kshs 500,000, while traditional securities will be required for loans exceeding Kshs 500,000.
Special
It is only available to groups undertaking commercial ventures that generate money on a regular or pre-determined irregular basis. It will be used for agricultural production, cattle trading, fishing, poultry ventures, and supply.
Smart
It is offered to members of a group that has benefited from YEDF and returned its debts.
Conditions
- Be a member of a group and have 75% of the membership recommend you.
- Minutes of the group indicating authorisation to borrow and guarantee the loan must be sent to the YEDF head office as part of the application material.
- In the first instance, no more than 80% of the members may borrow.
Following the payment of the first two installments on the first loans, the following batch of members will be funded.
Swift
It is for groups that are new consumers of the fund’s products.
Requirements
- Copy of a valid organization registration certificate and membership list.
- Copies of ID are required for all members.
- A written commitment by the organisation to repay loans guaranteed to its members.
- Minutes of the group nominating an applicant for a specific loan round
Loan application form duly filled.
6. Talanta Loan
Youths involved in the creative/performing arts are eligible for the loan. The applicant may be an individual, a registered group, a partnership, or a company owned and operated by young people. The loan could be used for working capital or to buy talent-related equipment.
Young people can borrow up to Kshs 2 million. It bears no interest, but a management charge of 5% of the loan amount is deducted at the time of disbursement. Chattels will be used to secure loans up to Kshs 300,000, and conventional securities will be used to secure loans above Kshs 300,000. Youths must have two guarantors, one of whom must be an industry professional.
Repayment Period
- Contract financing is available for a maximum of six months.
- The procurement of equipment accessories is limited to two years.
- A maximum of three months is budgeted for recording, production, or performance.
Amount Loaned
- Not more than 70% of the contract amount for film
- Not more than 70% of the cost for equipment and accessories.
- 90% of the budgeted recording, production, or performance.
Qualifications
- It must be registered with the appropriate authorized body.
- Where applicable, a valid contact must be provided.
- For music, evidence of recorded audio or video, or evidence of work in progress, is required.
- A budget must be included, as well as invoices or quotations if necessary.
- Two guarantors must furnish bank statements, one of whom must work in the business. In the absence of this, the applicant is required to furnish a traditional security.
Read also, List Of Uwezo Fund Loan Products In Kenya
Read also, List of Uwezo Microfinance Bank Loan Products
Youth Enterprise Development Fund Location & Contacts
Physical Location: 4th Floor Renaissance Corporate Park, Elgon Road, Upper Hill, Nairobi
Tel: 0723 522 841, 020 221 1672
Email: info@youthfund.go.ke, complaints@youthfund.go.ke
