Home Finance How To Apply For Agri-biz Loan From Youth Enterprise Fund

How To Apply For Agri-biz Loan From Youth Enterprise Fund

by Von Umpiantu

The Youth Enterprise Development Fund (YEDF) is a state corporation under the Ministry of Public Service, Youth & Gender Affairs. The Fund was established on 1st February 2007 as one of the strategies to address the challenge of youth unemployment in Kenya.

It is mandated to create employment opportunities for young people through entrepreneurship by providing financial support and business development services to youth owned enterprises.

Since agriculture is considered as the largest contributor to Kenya’s GDP, the fund has availed the Agri-biz loan which is basically for youth who wish to start or expand agricultural related businesses.

Features
The loan is available to youth who wish to start or expand agricultural related businesses including purchase of equipment and working capital.

The loan is available to individuals, registered groups, partnerships and companies owned and run by the youth. Youth can access up to Kshs. 2 million. The loan has no interest but a management fee of 5% of the loan amount will be deducted from the loan at disbursement.

The loan will be repaid within a period of 3 years. Loan amount up to Kshs. 300,000 will be secured using chattels and assets to be purchased. Loans above Kshs. 300,000 will be fully secured using conventional securities.

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Requirements
Applicants must source for inputs or equipment from accredited vendors and provide invoices/quotations for the same
Must have a valid supply contract where applicable and copies of the same provided
Must have relevant licenses, and provide copies
Must have a proposal for starting an agricultural undertaking endorsed by a mentor in the same agribusiness who will also guarantee the applicant
Must provide relevant business records including sales agreement
Must provide certified 6 months bank statements
Undertaking by contracting/procuring entity to pay the proceeds to Youth Enterprise Development Fund
Must provide proof of ownership of land where farming will be undertaken or lease agreements for leased land, or consent of use of land from the owner..
Must have 2 guarantors, one of whom must be operating in the industry. In the absence of this, the applicant must provide a conventional security.
Start-up applicants must be organized in groups, or must have alternative income, or must provide conventional securities.

Contact
Tel: 020 241 4423, 020 2211672, +254 723 522841
Email: [email protected], [email protected]
Facebook: Youth Fund Kenya
Twitter: @YouthFund_Ke
Website: www.youthfund.go.ke

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