The government has introduced a bold plan aimed at empowering young entrepreneurs by offering them loans of up to Ksh 5 million.
This initiative is designed to support disciplined youth who want to expand their businesses and improve their financial standing.
The plan is being implemented through a partnership between the Youth Enterprise Development Fund (YEDF) and the Hustler Fund.
On Tuesday, YEDF CEO Josiah Arabu Moriasi and Hustler Fund CEO Elizabeth Nkukuu held high-level discussions to explore ways to boost financial assistance for young business owners.
A key focus of this initiative is financial literacy training, especially for beneficiaries of the Hustler Fund.
The government is keen on ensuring that young entrepreneurs have the necessary financial management skills to help them handle larger loans responsibly.
According to Moriasi, individuals who demonstrate a history of responsible borrowing and timely loan repayment under the Hustler Fund will qualify for higher credit limits.
Those who meet the set criteria will be eligible for YEDF’s business expansion loan, which offers funding of up to Ksh 5 million.
“Our goal is to provide young entrepreneurs with the financial resources they need to scale up their businesses in a sustainable manner.
By incorporating financial literacy training, we are ensuring that these funds are put to good use, which will ultimately contribute to economic growth,” Moriasi stated.
Nkukuu echoed Moriasi’s remarks, stressing the importance of financial education among the youth.
“By equipping young borrowers with essential financial literacy skills, we will improve their ability to manage money effectively, reduce default rates, and help them build strong and sustainable enterprises,” she explained.
This initiative aligns with the government’s broader BETA agenda, which aims to bridge the gap between startup capital and business expansion financing while also promoting financial education.
The move to increase loan limits is expected to accelerate business growth, leading to the creation of more job opportunities for the youth.
This announcement follows a recent move by President William Ruto to remove seven million Kenyans from the Credit Reference Bureau (CRB) blacklist.
The president stated that the decision was meant to encourage Kenyans to borrow without fear of being blacklisted.
This is the second time in less than two years that Ruto has intervened to delist blacklisted individuals.
He pointed out that many of those previously blacklisted had borrowed small amounts ranging from Ksh 100 to Ksh 2,000 but failed to repay on time.
Additionally, the president revealed that over two million Hustler Fund borrowers would see their borrowing limits increase by up to 300%.
The repayment period for these loans has also been doubled, thanks to a newly introduced product known as the “Bridge Loan.”
The Bridge Loan will come with a one-month rollover period and an enhanced interest rate of 9.5%, providing more flexibility for borrowers to manage their repayments.
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