KENYA (PowerPoint download) by yaofenjin

VIEWS: 23 PAGES: 35

									KENYA
       Unleashing Potential,
            the Kenyan
            Experience


            A PRESENTATION
  BY HON. DR. PAUL NYONGESA OTUOMA,
MINISTER FOR YOUTH AFFAIRS AND SPORTS,
                 KENYA
             09th ,May 2011      2    2
THE YOUTH IN KENYA
 79% of Kenya’s population is 35
 years and below
47% are below 18 years old




  Kenya’s median age is 18.8 years
    IN SUMMARY
 Kenya  is experiencing a youth bulge
 The unemployment rate is 40%
 Over 60% of the unemployed are
  youth
 Many youth are now educated, thus
  raising their expectations
 The government is not taking this
  matter lightly
BACKGROUND
•   Government has started several youth
    focused programmes to tackle
    unemployment
•   These include:
    – Establishing Youth Enterprise
      Development Fund
    – Expanding National Youth Service
    – Labour intensive public works
      programmes
    – Expanding vocational skills training
Youth Enterprise Development Fund

•   Started in 2006
•   Aimed at spurring entrepreneurship
    among youth
•   To provide youth with opportunities
    to become job creators
•   Was started with an initial capital
    of USD 13 million
•   Started as a department of Ministry
    of Youth Affairs
    LEGAL FRAMEWORK
 Broadly established under   the State
  Corporations Act , Cap 446 of the laws
  of Kenya.In 2007 the Fund was
  transformed into a state corporation
  (semi-autonomous); established under
  a presidential decree
 The Ministry is working on a sessional
  paper to anchor the Fund in law
 The Fund is also envisaged in the
  national youth policy
INSTITUTIONAL ARRANGEMENT
 The Fund is run by a board
  appointed by the minister as per
  the law
 The Fund is fully funded by
  government, currently to the tune
  of about USD 40 million.
 Kenya has other funds targeting
  SMEs but Youth Fund focuses on
  Youth
FUNDING
 Further   USD 30 million has been
  raised       through       leveraging
  agreements         with      financial
  institutions that have agreed to
  match the government money with
  their own funding since October
  2008.
 If the Fund is to be sustainable
  financially it is expected to have
FUND’S SUSTAINABILITY
A   core capital base of at least USD 195
  million (Kenya shillings 15 billion )
 This is envisaged to be raised from both
  local & external funding sources.
 This funding is supposed to directly
  finance the core programme areas key
  being      lending       &        commercial
  infrastructure.
        MANDATES, PRODUCTS & SERVICES
1. LOANS
•   The Fund provides loans to individual youth and
    groups; either directly through constituency loans
    or via intermediaries.
•   Loans target startups and expanding enterprises
•   To date loans worth USD 40 million have been
    disbursed via intermediaries , while USD 7 million
    have been disbursed via the constituency loans.
•   So far the Fund has financed 95,000 youth
    enterprises via the intermediaries and 9000 youth
    groups through the constituency loans.
•   The individual loan products were introduced to
    incentivise youth to pay up their initial loans.
Skilled youth have taken loans and
established small workshops
2. BUSINESS DEVELOPMENT SERVICES
•   The       Fund      provides      pre
    disbursement training prior to
    loans being disbursed
•   Equally the Fund provides ,
    networking forums, mentoring
    services     & targeting business
    development        services    either
    directly through its own staff or
CREATING ENTERPRISE
 Through consultants    .
 The Fund through its advisory services
  helps young people to identify busyness
  opportunities in different parts of the
  country.
 This aspect of creating enterprise is a
  very critical factor in risk mitigation and
  ensuring a higher survival rate of the
  new businesses.
Entrepreneurship training
3. MARKET SUPPORT
•   The Fund supports youth to market
    their products & services .This is
    through organizing youth trade
    fairs at district, provincial and
    national levels; and also facilitates
    participation      in    regional   &
    international fairs.
•   The Fund intends to hold these
    fairs in all the counties as from next
    year.
Youth exhibit products in a YEDF organized
fair
4. LINKAGES
 The  Fund links youth enterprises to
  large enterprises
 This provides youth enterprises with:
    ◦ Market for products
    ◦ Technological transfer
    ◦ New business strategies
•   The Fund is also facilitating youth
    through:                franchising;
    subcontracting etc.
5.COMMERCIAL INFRASTRUCTURE
•   Youth enterprises lack access to
    decent working premises/trading
    space
•   The Fund is working with both
    public & private partners       to
    promote investment in youth
    focused infrastructure such as:
    – Market stalls
    – Business incubators
    – Business/industrial parks
Many youth trade poor conditions
6. JOBS ABROAD
 The Fund is working with employment
  agencies     to     identify       jobs
  opportunities abroad.
 The current target is 10, 000 by end of
  2011, and have managed 3000 so
  far.
 The Fund provides:
    ◦ Pre departure training
    ◦ Migration loans
    ◦ Linkage to govt. departments providing
      travel documents
M&E MECHANISM
 Tools have been developed to
  guide field officers and partners
 Reports are received quarterly
 Loans to intermediaries are given in
  tranches , hence all reports must
  be verified through field visits
  before releasing any subsequent
  tranches.
      WHAT WORKED WELL?
•   Partnership with communities has
    helped us succeed
•   Many youth have started or expanded
    enterprises
•   Many youth are now mainstreamed
    into financial services
•   Financial institutions   are     now
    leveraging the Fund’s resources
•   Financial institutions   are     now
    introducing youth focused products
LESSONS LEARNT
• Youth are creative, energetic,
  flexible and are able
• Working with youth requires
  patience and empathy
• The youth are bankable
• Not all youth are interested in
  entrepreneurship,hence others
  must create the jobs for them.
    LESSONS contd.
• Government      alone   cannot
  solve the youth problem
• Partnering with private sector
  helps      unlock     immense
  resources
• We must keep renewing our
  products/services to respond
  to changing needs
Political goodwill is key to success of
youth programmes
THE ROAD AHEAD-LINK
WITH KENYA’S VISION
Kenya   has a vision dubbed Vision
2030 , that envisages          a globally
competitive & prosperous nation by
the year 2030, with an annual
economic growth rate of 10%
This vision is anchored in three pillars
i.e. economic, political & social.
Under the social pillar the Youth Fund
is a flagship project and hence the
ROAD AHEAD (contd’)
   Vision 2030 envisages opportunity &
    empowerment
   This the Government through the Fund
    will:
•   Enhance engagement with both
    public & private partners to create
    opportunities
•   Increase accessibility of the Fund via
    devolving its structures
THE FUTURE
 Enhance      enterprise      through
  partnering with various institutions
  of learning to make it demand
  driven as opposed to supply driven
 Fast track the creation of an
  appropriate legal frame work
 All   government      ministries   &
  departments to implement youth
  programmes .
THE FUTURE
 Aggressively      pursue         other
  development partners to provide
  funding
 Because the solution does not lie in
  relegating     our    duty    to    an
  intermediary, the Fund will seek to
  take back a bigger role of the
  functions of the intermediaries.
 To operationalize the government
  directive of securing 10% of all
THE FUTURE
 Government    procurement to youth
  owned enterprises
 To establish a credit guarantee
  scheme to ensure that youths access
  bigger loans and facilitate them
  supply both in government and
  private companies
 Structure the current loan products
  to offer long term financing to spur
  real economic growth with greater
THE FUTURE
 Place   more   emphasis   on
 infrastructure development &
 youth employment n scheme
 abroad
We are up to the task!




We shall meet the aspirations of Kenyan youth
ASANTENI
SANA

								
To top