The Chairman of the Youth Enterprises Development Fund Gor Semelang’o says they have initiated the process of implementation with the Central Bank.
“We have already written to Central Bank of Kenya to obtain a Deposit Taking Microfinance licence.”
He said this was as a result of the delays that the young people experience while trying to get the loans through banks.
He has in the meantime asked youths to come up with businesses ideas that will help reduce the high rate of unemployment in the country.
The government through the fund will finance the projects through interest free loans to both groups and individuals who have brilliant business ideas.
Speaking during the launch of a youth initiative programme dubbed ‘You Win Awards’ by Makini Training and Consultancy; Semelang’o said the government will also introduce a Credit Guarantee Scheme to young people who do not have starting capital.
“We are now planning to roll out the credit guarantee scheme. If a young person takes a loan and he is not able to pay, then we will pay because these are selected young people who have brilliant ideas… they come from poor families and they do not have any collateral,” he said.
He said that the government is committed to provide an enabling environment to encourage more businesses in the country while urging the youth to work with the government. “The government will create an enabling environment and provide starting capital.”
He said if unemployment rate was reduced, it will lead to significant decrease in the rate of crime.
He added that the government intends to create a movie village to tap in new talent in the country.
“The Jubilee government wants to promote local talent and this will help reduce the cost of production. The movie village will create 500,000 jobs for the youth,” he revealed.
He further said plans were underway to have structured export labour to countries like Rwanda who have shortages of teachers.