Huduma Kenya has clarified the requirements for young entrepreneurs aiming to access business loans provided by the Youth Enterprise Development Fund (YEDF), which has been allocated Ksh761 million in the 2026/27 national budget.
Eligibility Criteria
- Applicants must be Kenyan citizens aged between 18 and 34 years.
- For group applications, at least 70% of members must be youth within the specified age range.
- Group leadership should be entirely composed of young people.
- Groups must hold valid registration certificates from recognized government bodies such as the Registrar of Societies or the Social Services Department.
- An active bank account in the group’s name is mandatory.
Loan Application and Conditions
- Applicants are required to complete and submit loan application forms.
- Loan beneficiaries must sign repayment guarantees; higher-value loans may require additional collateral depending on the loan amount.
- Mandatory entrepreneurship training must be completed before loan disbursement.
- YEDF loans are interest-free but attract a one-time management fee of 5%, deducted upfront.
Loan Products and Funding Limits
- Newly formed youth groups can access loans up to Ksh100,000.
- Groups with ongoing projects may borrow up to Ksh200,000 as first-time borrowers.
- Established groups seeking to expand businesses can apply for loans up to Ksh1 million.
- Special loans are available for enterprises with seasonal incomes, including agriculture, livestock trading, and fish farming.
Young entrepreneurs interested in the funding are encouraged to visit their nearest Huduma Centre, sub-county youth office, or the official Youth Fund portal for guidance on the application process.
The YEDF operates under the State Department for Youth Affairs and Creative Economy, aiming to empower youth-owned enterprises through diverse loan schemes tailored to startups and expanding businesses.
