Youth Fund reserves Sh100m to buy matatus for groups

 

 

 

Nairobi Governor Evans Kidero and Diarietou Gaye, World Bank country director in Nairobi. Photo/Salaton Njau

 

By NEVILLE OTUKI

The Youth Enterprise Development Fund has set aside Sh100 million to acquire matatus for young people across the country as it seeks to stem surging unemployment.

The fund will partner with the Matatu Owners Association to identify young people who will benefit from the programme. Under the arrangement, a single 33-seater bus will be allocated a group of 12, who will assume ownership upon paying the loans advanced.

“We are currently in talks with Nairobi County governor before we roll out our pilot project,” Youth Fund chairman Gor Semelang’o said.

Mr Semelang’o said the fund will soon unveil 10 buses in Nairobi, targeting 120 young people, before moving to other counties.

Matatu Owners Association chairman Simon Kimutai lauded the move saying it would help reduce idleness in town centres and lift living standards among the youth. “We are receptive to the idea and will work together with the youth,” Mr Kimutai said.

He added that priority on buses, as opposed to 14-seater vans, was in order to help decongest the city and save on time spent on the roads.

Meanwhile, young people have received a boost following Treasury’s allocation to Youth Development of Sh25.86 billion for the 2013/14 financial year.



Following the increase, the youth fund has significantly increased funding from Sh50, 000 per enterprise up to Sh2 million.

Under the Vuka product, individuals are eligible for loans based on capital requirement and business viability.

The State agency also plans to set up movie villages in every county at a cost of Sh271 million where talent in the film industry will be nurtured.

“We are meeting with Kenya filmmakers next week to identify these locations,” Mr Semelang’o said.

He said the agency was considering creating virtual offices from where young people will run enterprises at subsidised rates.

“We understand business premises are out of reach for many hence the need for us to step in,” said he.

This comes amid concern that only Sh1 billion out of Sh7 billion has been lent directly to youth with the rest having been loaned through commercial banks, which charge high interest.