The Youth Enterprise Development Fund (YEDF), a Kenyan state corporation established in 2006 that provides loans for youth-owned or youth-focused enterprises, reportedly has applied for a deposit-taking microfinance license from the Central Bank of Kenya, and will increase its focus on providing loans directly to young entrepreneurs in Kenya. [1]
YEDF previously involved private banks in its lending process, but this reportedly has led to significant delays in fund disbursals.
Since 2006, the Kenyan government has disbursed KES 3.8 billion (USD 44 million) to YEDF. CBK has KES 1.5 trillion (USD 18.5 billion) in assets as of June 2012.
By Meghan Gillis, Research Associate
About the Youth Enterprise Development Fund (YEDF)
The Youth Enterprise Development Fund (YEDF) was established in 2006 and became a Kenyan state corporation in 2007. The focus of YEDF is on reducing unemployment in Kenya by providing funding for youth-owned and youth-focused enterprises. It also provide ADD “-S” loans to micro-, small and medium-sized enterprises for on-lending to youth. From 2006 to 2012 the Kenyan government has released KES 3.8 billion (USD 44 million) to the fund.
About Central Bank of Kenya (CBK)
Established in 1966, the Central Bank of Kenya (CBK) is the country’s central banking authority. The Microfinance Act that was passed in 2008 allowed for the licensing of deposit-taking microfinance institutions (DTMs). Professor Njuguna Ndung’u was appointed Governor of Central Bank in March 2007 and continues to serve in that capacity as of 2012. CBK has KES 1.5 trillion (USD 18.5 billion) in assets as of June 2012.
Sources and Additional Resources
[1] AllAfrica: “Kenya: Govt to Bypass Banks in Youth Loans,” http://allafrica.com/stories/201305300181.html
[2] Youth Enterprise Development Fund: “About YEDF,” http://www.youthfund.go.ke/index.php/about-us/about-yedf
MicroCapital brief, June 4, 2013, “MICROCAPITAL BRIEF: Equity Bank, Google Announce BebaPay Card for Paying Bus Fares in Kenya,” https://www.microcapital.org/microcapital-brief-equity-bank-google-announce-bebapay-card-for-paying-bus-fares-in-kenya/
MicroCapital brief, May 29, 2013, “MICROCAPITAL BRIEF: Kenya-based Gulf African Bank, African Guarantee Fund Partner to Lend $1.2m to Small, Medium-Sized Businesses,” https://www.microcapital.org/microcapital-brief-kenya-based-gulf-african-bank-african-guarantee-fund-partner-to-lend-1-2m-to-small-medium-sized-businesses/
MicroCapital brief, April 25, 2013, “MICROCAPITAL BRIEF: Mennonite Economic Development Associates (MEDA) Maroc Launches ‘Financial Solutions Youth’ Project in Morocco,” https://www.microcapital.org/microcapital-brief-mennonite-economic-development-associates-meda-maroc-launches-financial-solutions-youth-project-in-morocco/
MicroCapital brief, October 22, 2012, “MICROCAPITAL BRIEF: Small and Micro Enterprise Programme (SMEP) Deposit Taking Microfinance Institution of Kenya Looking to Raise $18.5m in Share Capital,” https://www.microcapital.org/microcapital-brief-small-and-micro-enterprise-programme-smep-deposit-taking-microfinance-institution-of-kenya-looking-to-raise-18-5m-in-share-capital/
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