The government has unveiled an elaborate and ambitious plan to empower the youth by providing them with loans of up to Ksh5 million.
Disciplined young entrepreneurs who wish to further their economic status could soon be able to access large loans, courtesy of a strategic collaboration between the Youth Enterprise Development Fund (YEDF) and the Hustler Fund.
YEDF CEO Josiah Arabu Moriasi and Hustler Fund CEO Elizabeth Nkukuu engaged in high-level discussions on Tuesday as they explored ways to enhance financial support for young business owners.
Among the key areas of focus is financial literacy training, particularly for Hustler Fund beneficiaries. The government now aims to equip young entrepreneurs with financial skills to enable them to better manage their money, especially in the event they gain access to larger loans.
According to Moriasi, youth who exhibit a consistent borrowing and repayment track record under the Hustler Fund can qualify for higher credit limits. Those who meet the criteria will have the opportunity to graduate to YEDF’s business expansion loan product, which offers facilities of up to KSh5 million.
“The goal is to provide youth-led enterprises with the necessary resources to scale their businesses sustainably. By integrating financial literacy training, we are ensuring that these funds are put to productive use, ultimately driving economic growth,” Moriasi said.
On her part, Nkukuu echoed Moriasi's sentiments, emphasising the need for financial literacy among the youth. “Equipping youth borrowers with essential financial literacy skills will enhance their ability to manage finances, reduce default rates, and help them build strong, sustainable enterprises,” she said.
This initiative aligns with the government's BETA agenda, which seeks to bridge the gap between start-up capital and business expansion funding by promoting financial literacy.
The new plan to offer higher loan limits is likely to fuel business growth, subsequently creating more jobs among the youth in the long run. Notably, the latest announcement comes just months after President William Ruto announced that the government has removed seven million Kenyans who were blacklisted at the Credit Reference Bureau (CRB), in a bid to encourage Kenyans to borrow.
For the second time in a year and a half, the president announced the removal of a section of Kenyans from the blacklist, noting that a majority of Kenyans who had been blacklisted had borrowed Ksh100 to Ksh2,000 and failed to repay the loans in time.
At the same time, Ruto announced that more than two million borrowers on the state-run Hustler Fund would increase their borrowing limit by as much as 300 per cent, with the repayment period set to be doubled following the launch of a new product dubbed the 'Bridge Loan".
Borrowers of the Bridge loan will also be given a month-long rollover period at an enhanced interest rate of 9.5 per cent.
