Category Archives: Youth Funding

The Youth in Kenya

Yesterday saw the launch of a book entitled “Youth In Kenya: A Ticking Time Bomb” which is co-authored by a friend. The book looks at the challenge and job opportunities for the youth in Kenya, in terms of incentives, appropriate skills, cost of business, and new jobs for the youth, who one guest described as only interested in watching English soccer matches in the villages.

Youth in Kenya coverSome excerpts 

  • Kenya’s education systems was designed by the British to be a source of raw material and cheap labour.
  • Education CS Fred Matiangi: No other sub-Saharan Africa has put the resources in education that Kenya has in 50 years , and with 290 technical education institutions, there will be one in every constituency.
  • George Njenga: There are over 70,000 skilled Kenyans working in South Africa. It is important to look at the training of teachers, so that they also impact good foundation and lessons to the youth and Strathmore Business School has started on that.
  • Jonathan Mueke: There have to be standards in the Jua Kali sector – thousands of people produces hoes (jembes) that wont dig, and which Nakumatt (a large supermarket chain) cannot sell
  • FT Nyammo: We have thousands of available jobs to be done in the coffee, tea, and dairy sectors in rural Kenya, but no youth are willing to do them as they consider them to be menial. Also the Jua Kali sector provides 80% of employment when the economy is good, and the government should channel incentives there to create more Manu Chandarias! (one od Kenya’s most renowned industrial entrepreneurs)

One of the books’ main authors says he was inspired by media stories from last July, which described the Kenya Judiciary and Ports Authority as being were overwhelmed by job applicants; some had received 80,000 applications for 1,000 jobs advertised and even had stampedes at their offices.

The book was published by Longhorn  and sells for Kshs 900  ($10). It’s a non-academic book edited for everyone to read.

Youth in Kenya: book launchAside from this, last week,  the KCB (Bank) Group launched “2JIAJIRI”, a KShs. 50 billion job creation program under they committed to “set aside Kshs.10 billion annually in the next five years towards driving this enterprise development programme over the funds which will be used largely to support small and medium businesses run by the youth.” They hope to “reach 500,000 entrepreneurs (both existing and new ones) in 5 years, thereby creating at least 2.5 million direct and indirect jobs.”

 

Funding Youth & Women Enterprises In Kenya

Today, it became news that the government would no longer extends funds to  youth and women  programs. So far, the government has distributed more than Kshs 10 billion (~$10 million) to youths and Kshs 7 billion (~$70 million) to women.

Chase Bank Youth & Women FundsThe ending was not really new as a previous report released by the Central Bank of Kenya in 2015 noted that “the intention was not for the Government to lend, but to create an incentive for banks to engage with SMEs”.  Chase Bank Youth and Women Funds

Looking at financial results of two banks that had bond issues in 2015, and for which they released detailed information memorandums (IM’s), these show the flat or declining status of the youth and women fund programs. Both Chase, and Family, banks were intermediaries in the incentives by the Youth Enterprise Fund and the Women Enterprise Fund to advance funds to the respective target groups.

Family Bank Youth & Women FundsThat does not mean that the Kenya government has stopped supporting entrepreneurs in the sectors, as there’s now the Access to Government Procurement Opportunities (AGPO) initiative under which the government aims to allow 30% procurement contracts to be given to the youth, women and persons with disability without competition from established firms.