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Relax rules on defaulters to help youth access loans, says Osumba

Youth Enterprise Development Fund chairman Ronald Osumba has said the government is exploring ways to ensure youths blacklisted by financial institutions are allowed to get loans.

He said many have been locked out of loan facilities after they were blacklisted by Credit Reference Bureau (CRB) for defaulting either banks, saccos, Higher Education Loans Board (Helb), mobile money loans and even borrowed airtime.

“It is a challenge, we appreciate and accept that a number of young people are unable to get the youth loans but we are working with agencies like Helb and mobile companies to see how we can find a way of helping small business, especially those owned by youths, get finances,” said Osumba.

Speaking on the sidelines of a graduation ceremony for 120 youths in Mombasa who were trained on marketing, painting and design courtesy of Rangi Africa, Osumba said this follows complaints from applicants that the default list was keeping them away from accessing loans.

He said Mombasa county has registered the lowest number of youth taking up loans for business development.

Rangi Africa business development manager Douglass Omondi said the company is committed to offering a Sh8 million fully sponsored course targeting 2,000 youth from the county.

County Youth, Sports Gender and Cultural Affairs CEC Munywoki Kyalo said the training is in line with the  Big Four agenda on housing.

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