President William Ruto has unveiled plans to set up a Youth Enterprise Investment Bank before the end of the year, a move aimed at providing affordable financing, credit guarantees, and business training for young entrepreneurs across Kenya.
Speaking in Kakamega on Tuesday during International Youth Day celebrations, the president said the bank will be capitalised with Ksh9.75 billion to help address challenges such as lack of collateral, high interest rates, and limited access to business development support.
“To further support youth-led enterprises, we shall, before the end of this year, launch the Youth Enterprise Investment Bank. The bank will be capitalised at Ksh9.75 billion to provide financing, credit guarantees, and capacity building for young people,” Ruto stated.
The initiative is part of the government’s broader plan to enhance financial inclusion and create sustainable economic opportunities for the country’s youth, who form the largest share of the population.
Ruto noted that while the state already holds stakes in several commercial and development banks, the new bank will be dedicated to solving the unique financial barriers facing young business owners.
The president also highlighted other ongoing programmes, including the National Youth Opportunities Towards Advancement (NYOTA) project. Starting in September, young Kenyans interested in business will receive Ksh50,000 each under the World Bank-funded, five-year NYOTA programme, which targets unemployment, income insecurity, and low savings rates among youth.
NYOTA will also train 600,000 youth to qualify for Government Procurement Opportunities (AGPO) and provide 110,000 young entrepreneurs with mentorship, market linkages, and financial assistance.
In addition, Ruto announced the government will release Ksh5 billion to be distributed to 70 youth per ward across the country for small-scale business ventures, with beneficiary compilation expected to conclude next week.
