“Umoja Ni Nguvu”

Stephen N. KINUTHIA
Chairman & Team Leader
KibakiTenaLobbyGroup- EU

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Why Kibaki

::: YOUTH AFFAIRS

For four decades politicians have only paid lip service and made rhetoric of the fact that the youth are the leaders of tomorrow. The establishment of the Ministry of Youth Affairs in Nov. 2005 for the first time since independence proved that the current government was committed to the welfare and empowerment of the youth who constitute 75% of the population and 67% of the unemployed.


In June 2006, the Finance Minister, Amos Kimunya announced the creation of the Youth Enterprise Development Fund (YEDF) and allocated Ksh1bn in his budget to be disbursed as loans to the youth to set up enterprises at concessionary rates and without collateral.


The Ministry of Youth then organized the Youth Employment Summit (YES) in Nairobi in September 2006 to seek ways and means of empowering the youth economically. The initiative was finally launched in February 2007 by President Mwai Kibaki paving the way for the disbursement of funds.


Under the rules of the fund, 50 percent of the Ksh1bn fund will be disbursed to newly formed youth groups in all the country’s 210 constituencies. These new groups should have been registered and been in operation for at least three months. These groups, with a minimum of 12 members are required to produce business proposals to support their ideas. On the strength of these proposals they can then draw up to a maximum of Kshs. 50, 000 which should be repaid within 12 months.


The other half of the fund will be disbursed through 15 Micro Finance Institutions for onward lending to established youth groups that can then draw up to Kshs 500 000. The government has extended the funds to the MFIs as loans payable over three years. In turn, youth who will benefit from the fund, through MFIs, will be charged an interest rate determined by individual lending institutions, but on a reducing balance basis.


The Kibaki government’s commitment to Kenya’s largest marginalised group

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