Fund tells youth to register companies for accessing State tenders

The Youth Enterprise Development Fund has called on young people to register companies so they can benefit from government tenders.

Its chairman, Gor Semelang’o said this was the only way the youths could benefit from the government’s plan to give 30 per cent of tenders to young people.

“Thirty per cent of the budget is at least Sh300 billion; this is not small money and so all the youths need is to register their companies so they can benefit from this initiative by the government that is meant to address the problem of youth unemployment,” Mr Semelang’o said.

He said the youth should register their companies with the Treasury under a scheme called Young Peoples’ Access to Procurement for easy coordination.

“The government will then coordinate these tenders,” he said

He said tenders such as those for supplying government institutions with stationery, foodstuff and other technical aspects would be open to young people as soon as they showed capability to deliver.

“The government appreciates the role of youths in pushing the development  agenda of this country to the next level. We thus want to encourage them to come forth and we will assist them form these companies so they can take charge of their destiny,” Mr Semelang’o said

To ensure that even those without start-up capitals get the tenders, Mr Semelang’o said the fund would advance loans to such companies to enable them qualify.

“We know that there are financial conditions that an individual or company is required to fulfil before qualifying for these tenders. Accordingly, we have decided to offer LPO financing to enable them supply the goods or services,” he said

He was speaking at the Serena Hotel yesterday when he presided over the official launch of Ford Foundation’s strategic plan that also seeks to empower more youth people in the city.

How to register a company:

• Come up with a name. This initial part takes around two days at the Registrar of Companies and one pays an amount not exceeding Sh500.
• Prepare memorandum and articles of association, which describe objectives, rules, members and authorised share capital of the company.
• Pay stamp duty. This is guided by the nominal capital and is paid at the Kenya Revenue Authority offices. Two copies of this go to the lands registry, one is retained by the company owner while the other remains with the bank.
• Declaration of compliance. A commissioner of oaths signs the form on your behalf. The other requirements are PIN numbers, NHIF details of members or employees and business permit from the county government.