Kenyan entrepreneurs trained by the Tony Elumelu Foundation will be given priority for additional funding under a deal between the Youth Enterprise Development Fund and the United Bank for Africa (UBA).
The YEDF and the UBA Foundation have partnered to identify, finance and train the Kenyan entrepreneurs to increase chances of making it in business.
The two institutions will implement yearly a programme that will see the start-ups get up to Sh500,000 additional funding to expand their businesses.
“The collaboration will see entrepreneurs benefit not only from additional financing but also mentorship, training and counselling,” said Ronnie Osumba, the YEDF chairman during launch of the partnership last week. TEF applicants for additional funding will be integrated into the existing Vuka loan or one of the applicable loan products by YEDF.
Vuka is a business expansion loan that attracts an interest of 6 per cent where loans of below Sh100,000 are secured by chattels, stock and business assets.
Loans of above Sh100,000 are secured by conventional security under the plan whose credit offering goes up to Sh5 million.
YEDF chief executive Josiah Moriasi noted that the turnaround time between loan application and access to the funds is from two weeks to one month.
Since inception in 2007, the YEDF has disbursed Sh12.2 billion to an estimated 1.4 million youth in Kenya. “We have chosen to partner with the YEDF because we share the same vision of promoting youth entrepreneurship in Kenya,” said Timothy Kioko, UBA head of Public Sector Group.