How youth money will be split
Nairobi constituencies will receive a relatively lower allocation of Uwezo Funds compared to rural constituencies based on the poverty index that classifies urban areas as more developed.
The allocation for the 17 constituencies ranges between Sh14 million and Sh16 million even as some upcountry constituencies such as Mandera South received Sh31 million.
The allocation sets the stage for youths and women groups to apply for the business loans at one per cent interest rate as the government attempts to uplift these economically marginalised groups.
The loans which will range between Sh50,000 and Sh500,000 will be issued on a first come first serve basis.
However, factors that will be considered during application include:the length of time the group has been in existence; the total amount contributed by the group; the current status of contribution and the proposed business plan for the loan applied.
“All groups shall be allowed a six months grace period before commencement of repayment of the loan but all loans shall be payable within two years from the expiry of the grace period,” says the regulations on the Fund.
All eligible groups must be registered with the department of social services, cooperatives or the Registrar of Societies, and should hold a bank account in the name of the group.