In Kenya the government has been supporting business startups and business development growth and development since it attained self-rule.
The government of Kenya has supported the growth of businesses through youth enterprise fund, women enterprise fund, Kenya industrial estates (KIE), industrial and commercial development corporation (ICDC)
1.Industrial & Commercial Development Corporation (ICDC)
ICDC is the first public Development Financial Institution (DFI) to be established in Kenya. It was established in 1954 by an Act of parliament.
Over time, through joint venture equity investment arrangements, ICDC has participated in the promotion of many companies operating in virtually all sectors of the economy. It has further assisted many indigenous Kenyans in the promotion of commercial ventures, through its lending programs in support of small and medium enterprises (SMES).
By 2006 ICDC had invested in a cumulative total of 105 companies in its equity portfolio. The projects financed included some of Kenya ‘s well established companies such as Centum Ltd, Sukhumi Supermarkets Limited, AON MiNET Insurance Brokers Limited, Eveready Batteries (K) Ltd., Kenya Wine Agencies Ltd., Industrial Development Bank Ltd., Development Bank of Kenya Ltd., Kenya National Trading Corporation (KNTC), Rivatex Ltd., Kenatco Taxis and General Motors (K) Ltd.
Through its branch network countrywide, the Corporation has assisted over 15,000 small and medium enterprises distributed in all counties in Kenya and covering diverse sectors of the economy (manufacturing, commerce, property and service, etc.). The cumulative amount disbursed to these enterprises is in excess of Kush’s. 2.0 billion
2.Kenya Industrial Estates (KIE)
Kenya Industrial Estates (KIE) was established in 1967 as a subsidiary of Industrial and Commercial Development Corporation (ICDC). Its major role is to promote indigenous entrepreneurship by financing and developing small scale and micro enterprises. KIE facilitates development and incubation of micro, small and medium enterprises (MSMEs) countrywide by: I) Establishing industrial parks (areas designated for small industries) ii) Providing credit iii) Provide Business development services (BDS
3.Youth enterprise development fund
The Youth Enterprise Development Fund (YEDF) is a state corporation .it was established by the government in 2006 with the sole purpose of reducing unemployment among the young who account for over 61 percent of the unemployed in the country. The fund is flagship project of Vision 2030, under the social pillar.
The target of the fund is young people within the age brackets of 18-35 years who number is 35.7 million out of the 47.6 million Kenyans according to 2019 population and census
Its mission is to increase opportunities for and participation by the Kenyan youth in national building through economic development and strategic partnerships.
The fund ‘s strategic fund focus is on enterprise development as a key strategy that will increase economic opportunities for the youth.
The functions of the fund are:
- Provide funding and business development services to youth owned or youth focused enterprises
- Provide incentives to commercial banks through appropriate risk mitigation instruments to enable them increase lending and financial services to youth enterprises
- Provide loans to existing micro-finance institutions, registered non-governmental organizations involved in micro financing and savings and credit co-operative organizations for on-lending to youth enterprises
- Attract and facilitate investment in micro, small and medium enterprises oriented commercial infrastructure such as business or industrial parks that will be beneficial to youth enterprises.
- Facilitate marketing of products and services of youth owned enterprises in both domestic and international markets
- Facilitate employment of youth abroad
One can access loans by approaching any one of the financial intermediaries in partnership with the Fund (e.g. Equity bank, Family Bank etc.). One can also access loans through the Constituency Youth Enterprise Scheme where one needs to be in a registered group.
Who is eligible for the fund?
- One must fall within the age bracket of 18-35 years.
- One must be a bona fide Kenyan (for an organization or a firm, it must be legally registered and operating in Kenya).
- One must have the intention of investing the fund in a business venture.
- Project should target areas not sufficiently served by financial intermediaries.
- The project should be based in a geographical area with economic potential.
- Project should emphasize youth employment.
- The fund is a loan and therefore should be repaid
4.The Women Enterprise Fund
The women enterprise fund (WEF) was established through Legal Notice No. 147 of 2007 and began its operations in December 2007.
The Fund was established to provide alternative financial services to women who are excluded from the formal and informal financial sectors. The Fund provides accessible & affordable credit to support women start and/or expand business for wealth and employment creation.
The Women Enterprise Fund has five functions as provided in the establishing legal notice:
a) Providing loans to women using the two channels, namely, the micro-finance institutions (MFIs) and the Ministry of Gender, Children & Social Development under the Constituency Women Enterprise Scheme.
b) Attracting and facilitation of investment in MSMEs oriented infrastructure such as business markets or business incubators that will be beneficial to women enterprises.
c) Supporting women-oriented micro, small and medium enterprises to develop linkages with large enterprises. d) Facilitation of marketing of products and services of women enterprises in both domestic and international markets
d) Facilitation of marketing of products and services of women enterprises in both domestic and international markets
e) Supporting capacity building of the beneficiaries of the Fund and their institutions.
Who is eligible for the Fund?
- Applicant must be a Kenyan woman aged 18 years and above (for a group it must be registered and be operating in Kenya).
- Purpose for funds applied must be either for starting or expanding an existing business
- Applicant must have identification details such as business registration certificates or personal identification papers such as National Identity Card or passport
- The applicant must have a bank account preferable with the preferred Financial Intermediary
- In the case of a group, the group has to physically be operating within the Constituency of loan application)
- Groups must provide minutes of group meeting indicating resolution to borrow
Thanks for reading this article have a fruitful day ,won’t you!!