How truck owner has reaped from youth funding
Mr Ashton Kariuki, founder and CEO at Arimi farm store an Agrovet shop based in Chuka town, Tharaka Nithi County.
What you need to know:
- The disbursement in a similar period this year went up 24 percent to hit Sh107.64 million, benefiting 11,900 youths.
- As at September, YEF has disbursed Sh281 million benefiting 31,680 youths across the country in the last six months.
Ashton Kariuki, an entrepreneur based in Chuka town, Tharaka Nithi is one of the latest beneficiaries of a Sh3.9 million funding from the Youth Enterprise Development Fund (YEF) to purchase a truck.
The money advanced by the kitty covered 75 percent of the cost of the lorry with the entrepreneur paid the balance to finance the deal.
Asset financing is one of the new products recently developed by the fund to meet the ever-changing needs of youth entrepreneurs.
“Ashford has been spending huge sums of money on transport. We are glad that he identified the Youth Fund as a partner in dealing with this challenge. The fund has advanced him Sh3.9 million,” said YEF acting chief executive Benson Muthendi in interview with Smart Business last week.
The fund has been automating its loan application process to enhance faster approval of credit to youth-owned enterprises.
In April, YEF suspended recovery of loans and listing of defaulters with credit reference bureaus to cushion beneficiaries from the impact of Covid-19 pandemic.
Sh31.2 million loans
The fund in June restructured Sh31.2 million loans, equivalent to about 9.5 percent of its net lending at the end of last year.
They are also offering payment breaks of up to three months based on a case-by-case basis, as beneficiaries hit by cash flow hitches seek flexible terms.
Between January to March 2019, the fund had disbursed Sh86.6 million, benefiting 10,150 youths across the country.
The disbursement in a similar period this year went up 24 percent to hit Sh107.64 million, benefitting 11,900 youths.
As at September, YEF has disbursed Sh281 million benefiting 31,680 youths across the country in the last six months.
In Meru County alone, over the same period of time, the fund has given out loans totalling Sh38.1 million to 4,200 beneficiaries.
The fund, said Muthendi targets to issue Sh585 million during the current financial year as a result of a close partnerships with local leaders who have been in the forefront in mobilising young people to take up loans.
