State-owned Youth Enterprise Development Fund says it will lower the interest on most priced loan to six from eight per cent in July to encourage increased borrowing by youth-owned enterprises. Fund's chairman Ronald Osumba said the introduction of interest caps on commercial is not likely to affect the uptake of YEDF loans. The parastatal also use peer pressure in cases of co-guaranteeing for group loans and sensitisation of the youth on the importance of loan repayment. The Treasury has allocated an additional Sh600 million to the fund in the 2017-2018 financial year that start in July. To further increase uptake of loans, the fund is set to launch a start-up loan programme on July 1 this year which will be devolved to the counties.

Source: The Star May 28, 2017 21:11 UTC