The Youth Enterprise Development Fund will continue with its work despite government plans to consolidate financial institutions.
Youth Enterprise Development Fund Chairman Ronald Osumba, in a statement, said the fund intends to disburse Sh1 billion this financial year compared to Sh352 million in the last financial year.
Osumba noted that since the appointment of the new board in 2016, the fund has recorded an impressive increase in monthly loan uptake, from Sh20 million in 2016, to Sh100 million.
He also dismissed claims that the ongoing merger will disenfranchise those who are currently benefiting from the fund.
The government has announced it will merge the Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.
The move is aimed at increasing efficiency, resolving overlaps and better utilise resources to achieve economies of scale.
Osumba said the merger had been planned since Jubilee came into office in 2013.
“We wish to confirm that this is a government initiative which was first proposed in the Jubilee Party manifesto released prior to the year 2013 general elections. It is in line with the parastatal reforms that were recommended by the President’s taskforce on parastatal reforms in 2013,” he said.
The government has put mechanisms for a seamless change into the new outfit in order to avoid disruption of services.
“The task force working on the merger is still developing the regulatory framework which includes public participation. Those currently servicing loans advanced by the fund are advised to continue doing so,” Osumba said.
The board has re-engineered products and introduced new ones to serve special interest groups cultural and geographic diversity of the Kenyan youth.
“Notably, we have introduced loans for startups, agribusiness and for youth in the creative industry. We have also reduced group membership to five for youth interested in group loans.”
The fund will give bigger loans to businesses that seek to advance their loan portfolio. “We have further enhanced business expansion loans to Sh5 million,” he said.