List Of Loans Offered By Youth Enterprise Development Fund

This is a list of loans offered by the Youth Enterprise Development Fund. Youth Enterprise Development Fund is a state corporation under the Ministry of ICT, Innovation and Youth Affairs.

It is one of the Vision 2030 flagship projects that is under the social pillar. It seeks to create employment opportunities for young people through entrepreneurship. The fund provides easy and affordable financial and business development support services to youth interested in starting or expanding businesses.

Loans Offered By The Youth Enterprise Development Fund

1. Bid Bond And LPO/LSO Financing

Youth Enterprise Development Fund offers Bid Bond and Local Purchase Order/ Local Service Order financing to youths participating in government tenders, under the AGPO programme and from other procuring entities that are not owned by the government.

The loans can be accessed as follows;

Local Purchase Orders (LPO) Financing

  • 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 undertaking, bank guarantees and conventional security.

Requirements

  • Be registered with the relevant government body.
  • A valid LPO from a qualifying agency.
  • Undertaking by the procuring entity to pay the tender proceeds in favour of Youth Enterprise Development Fund Board.
  • Customer account details.

2. Vuka Loan

The loan is available to youth who wish to start or expand businesses. Applicants may use the loan for working capital or to purchase income generating assets.

Vuka Start Up

  • It is advanced to youth with alternative verifiable income and business plan.
  • Youths can access up to Kshs 500,000
  • The loan is fully secured by conventional security.

Vuka Expansion Loan

  • The loan ranges from Kshs 100,000 to 5,000,000
  • It attracts an interest of 6% and a one-off management fee of 1% netted off from the loan at disbursement.
  • Grace period is one month
  • Loan of Kshs 100,000 will be secured using chattels, stock and business assets. Loans 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 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 being purchased, and must be new. Used motor vehicles shall bot exceed 8 years of age. The financed vehicle will be fitted with a tracking device and comprehensively insured.

Repayment Period

Amount.                      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 case of partnerships, 70% of the partners should be between 18-34 years.
  • Borrower will bear all costs such as insurance, security perfection, valuation, registration of charge/chattel and legal fees.

3. Agri-Biz Loan

The loan is available to youth who wish to start or expand agricultural related businesses. It is available to individuals, registered groups, partnerships and companies owned and run by the youth. Youths 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 repayment period is three years. Loans up to Kshs 300,000 will be fully secured using conventional securities.

Requirements

  • Applicants must source for inputs or equipment from accredited vendors and provide invoices or quotations for the same.
  • Must have relevant licenses and provide copies.
  • Must have a valid supply contract where applicable and copies of the same provided.
  • Must have a proposal for starting an agricultural undertaking.
  • Must provide relevant business records including sales agreement.
  • Provide certified 6 months bank statements.
  • Provide proof of ownership of land where farming will be undertaken or lease agreements for leased land or consent of use of land from owner.
  • Must have 2 guarantors, one must be operating in the industry. In the absence of this, the applicant must provide conventional security.
  • Start up applicants must be organized in groups, or must have alternative income or conventional securities.

4. Incubator Loan Product

Youth Enterprise Development Fund provides youth with egg hatching incubators on credit.

5. Constituency Based Loans

The loan aims at supporting people to start income generating activities at the constituency level.

Constituency based loans include;

Rausha

Rausha loan is meant for groups and individuals and is up to Kshs 100,000. It has a 3 month grace period, with repayment made in 12 equal monthly instalments.

Inua

It is a business expansion loan for groups. It is advanced to groups with running businesses. Groups which have fully repaid rausha or loans from other institutions can apply for inua loans. Loan anount starts from Kshs 200,000, and groups can progressively graduate up to Kshs 1,000,000.

The first Inua loan has a one month grace period. There are no grace periods for subsequent loans. Loans up to Kshs 500,000 will be secured using chattels while conventional securities will be required for loans above Kshs 500,000.

Special

It is available only to groups running business projects that generate money on periodical or pre-determinable irregular periods. It will be available for agricultural production, livestock trading, fish farming, poultry projects and supplies.

Smart

It is available to individuals belonging to a group that has benefitted from YEDF and repaid its loans.

Conditions

  • Be a member of a group and be recommended by 75% members of the group.
  • Minutes of the group indicating authority to borrow and guarantee the loan must be attached as part of the application documentation to the YEDF head office.
  • A maximum of 80% of the members shall borrow at the first instance . Subsequent funding to the next batch of members shall be after two instalments on the first loans have been paid.

Swift

It is for groups that are new consumers of the fund’s products.

Requirements for group loans

  • Copy of certified valid group registration certificate and list of membership.
  • Copies of ID for all members.
  • A signed undertaking by the group to pay loans guaranteed to its members.
  • Group minutes nominating an applicant to a particular round of loan
  • Duly completed loan application form.

6. Talanta Loan

The loan is available to youths in the creative/performing arts. The applicant may be an individual, registered group, partnership or companies owned and run by the youth. The loan may be used for working capital or purchase of talent related equipment.

Youths can access up to Kshs 2 million. It has no interest but a management fee of 5% of the loan amount will be deducted at disbursement. Loans up to Kshs 300,000 will be secured using chattels and loans above 300,000 will be secured using conventional securities. Youths must have 2 guarantors, one of whom must be in the industry.

Repayment Period

  • Contract financing is a maximum of 6 months.
  • Equipment accessories purchase is a maximum of 2 years.
  • Budgeted recording, production or performance is a maximum of 3 months.

Amount Financed

  • For film, not more than 70% of the value of the contract
  • For equipment and accessories, not more than 70% of the cost.
  • Budgeted recording, production or performance, 90% of the budget.

Qualifications

  • Must be registered with the relevant authorized body
  • Must have a valid contact where applicable
  • For music, must have evidence of recorded audio or video or evidence of work in progress.
  • Must have a budget accompanied by invoices or quotations where applicable.
  • Must have 2 guarantors who must provide bank statements, one of whom must be operating in the industry. In the absence of this, the applicant must provide a conventional security.

Youth Enterprise Development Fund Contacts

4th Floor Renaissance Corporate Park, Elgon Road, Upper Hill, Nairobi

Tel: 0723 522 841, 020 221 1672

Email: [email protected], [email protected]

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