How to apply for a youth loan in Kenya successfully

Sh. 1 billion will be given out as loans to Kenyan youth this year.

For years, the youth had feared taking up loans due to ignorance or fear of being auctioned for default.

The Youth Enterprise Development Fund (YEDF) is working with those interested in startups loans, agribusiness and creative industry to expand their business.

YEDF Chairman Ronny Osumba said they intend to disburse Sh. 1 billion this financial year, up from Sh. 352 million given out last financial year.

The loan is available to individuals, registered groups, partnerships and firms owned and run by the youth.

They also have loans for starts up and agribusiness.  Osumba says the newly instituted changes at YEDF will ease access to loans. A notable change is group membership. Initially, they were not giving loans to registered groups with less than five people but can offer credit to any youth or group as long as they can repay. “We were not allowing groups with less than 20 people to secure loans but now even five organised people can make a group and apply,” he says.

Many young people, though, don’t know how they can apply. For a start, you will need to form a group or chama.

Youths in groups can apply for the funds from their various constituency offices locations by visiting the youths wing thus the loans were termed as ‘constituency based loans’

Required Documents
There are some documents which must be presented while looking for funding from the Youth Fund.

 Group registration certificate
 Group membership list with copies of member Identification Cards
 Group meeting minutes authorizing loan borrowing

How to apply for the Youth Fund Loan

1. Visit the youth wing at your constituency offices
2. Collect and fill in the loan application forms
3. Attach the required documents
4. Take the forms back to the youths office
5. Wait for the Officer’s response

If your loan application gets approved, the loan will be credited to your group bank account.