Kiambu County - Kenya: 40 Youth groups in Kiambu County who have been trained on agribusiness by Food and Agriculture organization of the United Nations (FAO) have received a total of Ksh 5.7m interest free loans from Youth Enterprise Development Fund (YEDF).

Speaking during the handover of the cheque, Kiambu County Deputy Governor Joyce Ngugi said this was a step in the right direction to make agriculture attractive to the youth to ensure the food security for the county and country.

‘We are encouraged that the youth who have embraced agribusiness has led to this important financial boost. It is because of you that we are assured that people will continue to have food on their table while ensuring that you have a sustainable source of livelihood.’

The three year project spearheaded by FAO in partnership with YEDF, seeks to promote agribusiness among young people in Kiambu County, to address the root causes of distress rural-urban migration among youth by creating entrepreneurship opportunities and creating linkages with the existing social protection programmes.

‘FAO is committed to supporting the youth to have the necessary knowledge and skills to embrace agribusiness, which is projected to be 1trillion dollar in Africa by 2030,’ said FAO’s National Coordinator for Decent Rural Youth Employment, Mary Thiong’o.

Funds cater for startups and existing businesses The disbursement of the loans is divided into two. The youth groups with startups received Ksh 100,000, with a grace period of three months before the repayment commences in 12 instalments. The youth groups with already existing businesses will receive Ksh 200,000, and will commence payment after 30 days of disbursement, every month for 18 months. The loans are interest free but with a 5% management fee. This credit will enable them to start and advance their agribusinesses for self-economic development and to enhance food security in line with the Government’s Big 4 Agenda.

‘We have sector specific loans for youth. The payment plan puts into consideration the product cycle. In addition to issuing these loans, we also train recepients on business intelligence, marketing and market intelligence, financial literacy, as well as business development. We are happy that FAO has already trained the youth who are receiving these loans today on this crucial aspect of financial and business readiness, creating a swift entry point for us,’ said Sammy Njue, the Credit Officer from Youth Enterprise Development Fund.

Charles Ndungu, chairman of the 58 youth groups in Kiambu County said that they are now financially literate as a result of being trained by FAO.

‘FAO trained us on good agriculture practices on the four value chains;- Improved local chicken farming, Piggery, Indigenous Vegetables as well as Herbs & Spices. Through table banking (vicoba), we have saved Ksh 1.2 million.’

According to a study done in six sub-counties in Kiambu County by FAO, the youth migrate from the rural areas in search for education and better employment opportunities. Access to finance was also found to be a major hindrance for youth participation in agricultural activities. This was mostly due to lack of information, high interest rates, lack of requisite collateral and other stringent loan requirements especially demanded by conventional lenders.

At least 1,087 youth from the sub counties of Kabete, Limuru, Lari, Githunguri, Gatundu South and Gatundu North have so far been trained along the four value chains. They have also been trained on good agricultural practices, agribusiness, value chain analysis/mapping and market assessments/research.

Note for Editors

About FAO FAO Kenya's mission is to work with the Government of Kenya (GoK) to help build a food-secure country, free of hunger and malnutrition, where food and agriculture contribute to improving the living standards of all, especially the poorest, in an economically, socially and environmentally sustainable manner. The 2018-2020 Country Programme Framework stipulated the four pillars of or work.

For FAO, social protection is a set of interventions whose objective is to reduce social and economic risk and vulnerability, and to alleviate extreme poverty and deprivation.

About Youth Enterprise Fund

The Youth Enterprise Development Fund is one of the initiatives established by the government in the year 2006 to address the challenge of youth unemployment through entrepreneurship. It is one of the flagship projects of Vision 2030 under the Social Pillar. The fund provides affordable financial and business development services to youth owned enterprises.

To date, the Youth Fund has supported 1.9M youth across the country with loans and business development services worth Shs.13.5B. This has translated to job creation for youth and their active participation in the economic development of the country. The fund has developed various loan products targeting business start-ups, expansion, asset financing, agribusiness, talent and LPO/LSO financing. Youth can access these funds in registered groups, individuals, companies or partnerships.

Financial inclusion is crucial in enhancing participation of youth in the economic development, improving livelihoods as well as enhancing food security. The three institutions are determined to work together to leverage on expertise, resources and geographical spread with a view to building the capacity of rural youth to tap into the opportunities along various agricultural value chains and supporting them to scale up their agri-businesses.

For more information

Contact

Lydia Limbe

Communication Specialist,

FAO Kenya.

Email: [email protected]