Ruto Announces Plans for New Government-Owned Youth Bank
President William Ruto has unveiled plans to set up a new government-owned financial institution known as the Youth Enterprise Investment Bank.
The main goal of this bank will be to support youth-led businesses across Kenya by making it easier for young people to access affordable financing, credit guarantees, and training to help them succeed in business.
Speaking in Kakamega on Tuesday during celebrations to mark International Youth Day, President Ruto said the bank will be launched before the end of this year and will have an initial capital of Ksh9.75 billion.
This funding will be dedicated to providing loans at affordable rates, offering credit guarantees for young entrepreneurs who lack collateral, and running programmes to build their skills and capacity in business management.
“To further support youth-led enterprises, we shall, before the end of this year, launch the Youth Enterprise Investment Bank.
The bank will be capitalised at Ksh9.75 billion to provide financing, credit guarantees, and capacity building for young people,” Ruto announced.
The Head of State explained that the creation of this bank is part of a broader government plan to promote financial inclusion and create long-term economic opportunities for the youth, who make up the largest percentage of the Kenyan population.
He emphasised that the bank will be structured in a way that addresses the challenges young entrepreneurs face — including lack of collateral, high interest rates, and limited access to professional training and business development support.
President Ruto confirmed that the bank will start operations before the year ends so that more young Kenyans can access the resources they need to start, expand, and sustain their enterprises.
The Kenyan government already has stakes in several commercial and development banks, with ownership ranging from small shares of just under 20 percent to full control in some institutions.
These investments are either managed directly through the National Treasury or via various state corporations and parastatals.
The government’s involvement in the banking sector includes both fully operational commercial banks and specialised lenders such as development finance institutions and savings banks.
Currently, out of over 39 licensed banks in the country, the state owns shares in at least six. This gives the government a notable, though not dominant, presence in the banking industry, allowing it to influence policy and strategic direction in certain institutions.
These banks are often used to promote specific government objectives like financial inclusion, affordable mortgage financing, and supporting small and medium-sized enterprises (SMEs).
However, the president did not go into further detail about the ownership structure or operational model of the upcoming Youth Enterprise Investment Bank.
In addition to announcing the new bank, Ruto also spoke about other government initiatives aimed at supporting young entrepreneurs.
He reiterated that starting in September this year, young Kenyans interested in launching small businesses will receive Ksh50,000 each through the National Youth Opportunities Towards Advancement (NYOTA) programme.
NYOTA is a five-year initiative funded by the World Bank, designed to tackle unemployment, low income, and limited savings among the youth.
It aims to equip 600,000 young people with the skills needed to take advantage of Government Procurement Opportunities (AGPO) and to provide 110,000 youth entrepreneurs with business training, mentorship, market connections, and financial assistance.
The president also revealed that the government will soon release Ksh5 billion to benefit youth in all wards across the country. Under this plan, 70 young people in each ward who want to start small-scale businesses will receive funding.
The compilation of beneficiaries is expected to be completed next week, paving the way for the distribution of funds.
Join Gen Z New WhatsApp Channel To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30