Women, youth groups lined up for interest-free Uwezo fund
Devolution secretary Ann Waiguru during a past function. Beneficiaries of the Uwezo Fund will be determined on a needs basis and how viable a proposal is. Photo/File
What you need to know:
Devolution secretary Ann Waiguru said on Thursday that 40 per cent of the money or Sh2.4 billion would be offered as grants where beneficiaries will only repay the principal.
The rest of the money will disbursed to qualified groups through constituencies at concessions interest rates.
The launch of the fund marks a concrete step by the Jubilee government to fulfil its promise that the Sh6 billion saved by avoiding a run-off in the presidential race, which it won, would be used to set up the youth and women in business.
Kenyan youth and women are in line for State grants to finance start-ups following a decision to have part of the Sh6 billion Uwezo funds distributed interest free.
Devolution secretary Ann Waiguru said on Thursday that 40 per cent of the money or Sh2.4 billion would be offered as grants where beneficiaries will only repay the principal.
“Beneficiaries will be determined on a needs basis and how viable a proposal is,” Ms Waiguru said during a press briefing at the University of Nairobi.
The rest of the money will disbursed to qualified groups through constituencies at concessions interest rates. Only groups of 10 people or more will be considered for the Uwezo fund.
Ms Waiguru said 75 per cent or Sh4.5 billion will be shared equally among counties while 10 per cent or Sh600 million will go toward offering beneficiaries business skills.
The other Sh900 million will be allocated on a quota basis with the poorest counties receiving more.
Constituency committees would determine how the money is shared between the youth and women.
The Uwezo Fund will be launched on Sunday by President Uhuru Kenyatta on the University of Nairobi grounds.
Entrepreneurs
The launch of the fund marks a concrete step by the Jubilee government to fulfil its promise that the Sh6 billion saved by avoiding a run-off in the presidential race, which it won, would be used to set up the youth and women in business.
It mark a break from similar government funds that have always attracted slightly lower interest than those prevailing in the market.
The Youth Enterprise Fund charges an 8.5 per cent interest per year and is open to both individual and group entrepreneurs.
Under the Uwezo Fund each group will be eligible for up to Sh500, 000. The Youth Fund gives up to Sh3 million per project.
The money will be disbursed through constituencies and will be overseen by women representatives and MPs.
In the arrangement, applicants will submit their proposal to a committee comprising a youth representative, women’s representative, religious groups and a physically challenged person for scrutiny.
The committee will then decide whether to fund the proposal based on its strength.
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