Just as promised, the government has finally set aside ksh. 6 billion for distribution to various women and youth groups across the country to provide seed capital for start-ups. Big money it is and no one should be left out in this.
The government has further promised that 30% of all government tenders should be allocated to women and youth groups in Kenya. This does not sound tantalizing till you get to know that we are talking of a whooping ksh.200 billion being channeled to our local youth groups and women chamas.
The Uwezo Fund is meant to create the capacity in the youth and women groups to enable them to be stable enough to bid for the government tenders.
The loans from the Uwezo Fund shall carry a one off 3% administrative charge and no other interest shall be charged on it. A group can borrow as much as ksh. 500,000 depending on the size of their business plan.
To access the fund, the group shall be required to write a good business plan and forward it to the constituency committee for vetting and if they qualify, they get the cash.
Compared to what the Youth Fund used to offer; a loan of ksh. 50,000 to a group of at least 12 youths, this seems to be much better considering that the capital base has been widened to a higher limit of ksh.500,000.
However, controversy has been raised on the adoption of the constituency framework to distribute the cash to the youth and women groups’ country wide bearing in mind the height of corruption in those constituency committees. In a show of transformation, the constituency committees shall be having one representative for the youths and women as well as have the MP sitting in them to try and bring in transparency.
It’s time for that business idea you have been sitting on to get some funding and be transformed from just an idea in your mind to an actual running business. Write a business plan; na ujitegemee!