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HomeNewsGovernment Announces Ksh1 Million Funding for Youths; How to Apply

Government Announces Ksh1 Million Funding for Youths; How to Apply

Government Announces Ksh1 Million Funding for Youths; How to Apply

The Ministry of Co-operatives, Micro, Small, and Medium Enterprises (MSMEs) announced a financial opportunity for Kenyan youth.

The ministry, headed by Simon Chelugui, announced that a new loaning product called ‘Stawi’ had been designed to allow Kenyan youngsters access to up to Ksh1 million.

The government advised Kenyans aged 18 to 35 to apply for loans through the Youth Fund website.

“Are you an enterprising youth group in need of a start-up or business expansion loan? We have the answer for you in our Stawi product,” the Ministry of Co-operatives stated.

The ministry noted that Kenyan youths who own small enterprises can now access the loan category with the fewest limitations.

“Let us focus on building the capacity of Cooperatives, Micro, Small and Medium Enterprises through training, education, research and ICT support as well as promote value addition, manufacturing and market access,” CS Co-operatives Chelugui reassured.

A portion of the statement said, “Our Stawi loan is a group loan for start-ups, operating group projects/business expansion, special business initiatives that earn money periodically or during pre-determined irregular times, and acquisition of group company assets.”

The maximum amount of a Stawi loan is Kshs 1,000,000, and the maximum for group-owned start-ups is Kshs 100,000,000.

However, first-time borrowers will also be required to meet the following conditions:
The maximum loan amount for group start-ups is 100,000 Kenyan Shillings.

Kshs. 200,000 is the maximum amount for groups with active initiatives.

Additionally, the Stawi credit facility includes a three-month grace period for start-ups and a one-month grace term for ongoing projects.

As for Special Business Projects, repayment of the Loan begins following the applicable grace period based on the kind of business.

Essential Documentation

  • Certificate of Group Registration Validity
  • Certified Membership Listing Copies of identification documents/passports for 
  • Copies of identification documents/passports for the Certified Membership List
  • Group constitution
  • Collectively signed Agreement by the group members to repay the Loan.

The Ministry noted, “Visit our nationwide offices located in each county seat for further information on our loan products and application process.”

Ruto Clarifies on Hustler Fund Interest

President William Ruto addressed concerns on the interest rates levied on loans to Kenyans under the Hustler Fund, which is scheduled to be introduced on December 1.

Ruto guaranteed at the Kenya National Chamber of Commerce and Industry (KNCCI) annual general meeting on November 10 that the lending rates would be lower than those offered by banks.

He stated that in the future, the state intends to eliminate interest on loans made to small, medium, and micro businesses (MSMEs).

“I want to promise the country that the hustler fund is going to be on a single-digit interest and progressively for the smaller enterprises, we will begin with just a simple fee without interest,” Ruto explained.

The President urged the nation’s commercial banks to collaborate with the government in the implementation of the fund and to give special interest rates under the fund.

“I want to persuade our financial institutions to be flexible in how they lend their finances but also consider the aspect of cost. We want to fire the bottom of the pyramid, that is where the engine of the economy is,” he pleaded.

In addition, he renewed his appeal to reinvest in Kenya’s human capital, which he deemed the most important factor in reviving the economy.

“We may not have gold and silver but we have the people of Kenya and that is the asset that is going to turn around our nation. We need to fund the human capital,” he stated.

Through training and education, human resources may reach their full potential to meet current global demands, he noted.

Ruto highlighted the contribution of technology to the improvement of the economy, notably the smartphone, which has become a fundamental component of conducting business in the twenty-first century.

He urged manufacturers to design a locally manufactured, reasonably priced smartphone. In addition, he pledged to complete the digitization of government services during his tenure.
The president was accompanied by his vice president, Rigathi Gachagua, and the cabinet secretary for trade and industry, Moses Kuria.

Government Announces Ksh1 Million Funding for Youths; How to Apply


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