Empowerment fund interest rates set for reduction
24 February 2014, 10:35
Nairobi - The Youth Enterprise Fund (YEF) interest rate on loans is set to be reduced to a minimum of 5 percent upon approval of the fund managers and leaders within the youth fund.
Fund Chairman, Gor Semelang’o, said that they would look into the reduction in the lending rates of the KES 6 billion youth fund after the President directed that the fund’s interest be pegged at 1 percent.
“As youth fund, we will be reviewing those rates downwards and we will be consulting with other leaders and the managers of the fund to ensure that the timing will be right,” said Semelang’o.
The youth fund, which does not currently have a board, will be managed by the National Uwezo Fund Oversight Board which will be formed by the Cabinet Secretary for Devolution.
The board would ensure that the goals of the fund are achieved.
The fund was established in year 2006 with the sole purpose of reducing unemployment among the youth who account for over 61 percent of the unemployed in the country.
The target of the fund is young people within the age bracket of 18 to 35 years. The fund manages the youth and women’s fund which has its genesis in the pledge that was made by President Uhuru Keyatta and his deputy, William Ruto, to allocate funds to empower these members of the community.
– CAJ News
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