State in Sh6b drive to create jobs for youths

By PATRICK BEJA

Kenya: Kenyan youths could get Sh6 billion interest free loans and well paying jobs abroad by end of next month if plans by the Government sail through.

The Youth Enterprise Development Fund (YEDF) said it will release the money allocated in the Budget to 250,000 youth groups throughout the country by the end of July.

At the same time, the fund will kick out labour export cartels and set up a national secretariat in Nairobi to recruit youths for decent jobs abroad.

YEDF chairman Gor Semelang’o said yesterday the interest-free cash to the youth had been increased from Sh50,000 to Sh400,000 in line with the Jubilee pledge to support the youth to access funds to set up enterprises.

“We are going to hire two officers each in the 290 constituencies with motorbikes to mobilise youths in groups to receive the funds,” he said.

The youth would be put into groups of seven to 12 and be encouraged to meet twice a week to ease supervision.

He said the Sh6 billion would be distributed directly to the young people after they undergo training instead of being channeled through commercial banks.

He was speaking at Bandari College in Mombasa during an awareness campaign on the fund dubbed Chanuka Ujitegemee empowerment forum.

Semelang’o was flanked by Myspace Properties Managing Director Mwenda Thuranira and Rafiki deposit-taking microfinance chief executive officer Mr George Mbira, among others. Semelang’o said the fund has partnered with Rafiki microfinance to ensure youth get loans with collateral.

He said the fund offices will now be based at the Constituency Development Fund offices.  “Youths are known to be high risk borrowers and therefore we have offered guarantee and Rafiki offers Sh400 million in the credit scheme,” he said.

On the manpower recruitment programme, Semelang’o said the fund would establish a recruitment secretariat similar to the one in the Philippines with a lawyer, and immigration and diaspora officers to ensure structured employment of young people abroad.

Signed contract agreements with employers overseas would be sent to Kenyan ambassadors who would follow up on workers there to ensure there is no exploitation.

“The youth will bring their curriculum vitae, trained and given funds for travel and upkeep once recruited. It is going to be a structured labour export arrangement,” he said.