Kahiga decries low uptake of enterprise fund by youth - Beaking Kenya News

Beaking Kenya News

Where It All Happens

Breaking Kenya News

Websites Development

Translate

Friday, 9 October 2020

Kahiga decries low uptake of enterprise fund by youth

 

Only a small number of youths benefited from the Sh30 million county Enterprise Development Fund, Nyeri Governor Mutahi Kahiga has said.

He said only five out of 55 men who benefitted from the fund were youths while 11 out of 52 women were youths.

The governor spoke when he presided over the disbursement of the EDF cheques, motorbikes and tuk tuks on Wednesday.

The fund is meant to revive the economy following the Covid-19 pandemic as one of economic recovery strategies by the county.

The EDF, which is a revolving fund, will be paid at five per cent interest.

The governor said more money will be allocated to EDF during the supplementary budget, saying the target is to raise the amount to Sh100 million.

The EDF is among the county’s flagship programmes established under the Nyeri County Enterprise Development Fund Act 2018 with the objective of enterprise development in Nyeri county.

“It offers Business Financing, LPO (Local Purchase Order) and LSO (Local Supply Order) financing, technology acquisition, asset financing – the asset is the security and agribusiness financing at an affordable interest rate of five per cent per annum on reducing balance,” Kahiga said.

Trade executive Diana Kendi said the uptake of the fund was at 100 per cent.

“This means that we would probably be requiring some additional funding to continue lending at that rate,” she said.

“I am very proud to announce that the beneficiaries of this fund have been very diligent in paying. Since we started, we have only one defaulter.”

Kendi said the uptake of the loan has been 50-50 across the genders, saying it mirrors equal opportunities between men and women.

The beneficiaries include those in the matatu industry, ICT, mechanics, boda boda industry, agribusiness and those in the manufacturing sector.

 EDF board chairman John Githinji urged beneficiaries to pay the money promptly so that more people can benefit.

Morris Wanjiru who received a motorbike said before he used to ride somebody’s bike and remitted a certain amount of money to the owner daily.

“I am happy that with this one, I will only have to submit money for payment of the loan for one or two years then own the bike completely,” he said.

No comments:

HOME

Pages