The Ministry of Co-operatives, Micro, Small and Medium Enterprises (MSMEs) on Tuesday, November 8, announced a funding opportunity for Kenyan youth.
In a statement, the ministry, headed by Simon Chelugui, revealed that a new loaning product known as 'Stawi' has been modeled to help Kenyan youth access up to Ksh1 million.
The ministry urged Kenyans between the age of 18 to 35 years to apply for the loans via the Youth Fund website.
"Are you an enterprising youth group in need of a start-up or business expansion loan? We have the answer for you in our Stawi product," the Ministry of Co-operatives stated.
The ministry added that Kenyan youths who are owning small businesses now stand a chance to access the special category of loan which has very limited restrictions.
"Let us focus on building the capacity of Cooperatives, Micro, Small and Medium Enterprises through training, education, research and ICT support as well as promote value addition, manufacturing and market access," CS Co-operatives Chelugui reassured.
"Our Stawi loan is a group loan for start-ups, running group projects/business expansion, special business projects that generate money periodically or during pre-determinable irregular periods and acquisition of group business assets," the statement read in part.
The features of Stawi loan include:
The maximum amount is Kshs.1,000,000,
The maximum loan amount for group-owned start-ups is Kshs.100,0000.
However, first time borrowers will also have to comply with the following requirements:
The maximum loan amount for group start-ups is Kshs.100,000
The maximum amount for groups with running projects is Kshs.200,000
Stawi loan facility also offers a grace period of three months for start-ups, one month for running projects.
As for Special Business Projects, the payment of the Loan commences after the applicable grace period, depending on the line of business.
Required Documentation
Copy of Valid group registration certificate
Certified Membership List
Certified Copies of IDs/Passports for ALL the members
Group constitution
Signed collective Undertaking by the group members to repay the Loan
"Visit our country-wide offices situated in each county headquarters for more information on the loan product and application process," the Ministry stated.
