A mjor hurdle facing youth in the creative sector is access to funds. Traditional lending insitutions do not generally provide loans to creative entrepreneurs and this greatly limits their ability to purchase equipment, run operations or sclae up. Through the Youth Enterprise Development Fund, there is now an opportunity available to young creative entrepreneurs.
About the Loan
The loan is available to youth in the Creative/Performing Arts. The applicant may be an individual, registered group, partnership or companies owned and run by youth. The applicant may use the loan for working capital or to purchase talent related equipment.
Youth can access up to Kshs. 2 Million. It has no interest but a management fee of 5% of the loan amount will be deducted at disbursement. Loan amount up to Kshs. 300,000 will be secured using chattels and assets to be purchased. Loans above Kshs. 300,000 will be fully secured using conventional securities. Youth must have 2 guarantors one of whom must be in the industry.
The loans may be used for:
Equipment and accessories purchase
Budgeted recording, production or performance
The repayment period is as follows
- Contract financing: Maximum of 6 months
- Equipment and accessories purchase: Maximum of 2 years
- Budgeted recording, production or performance: Maximum of 3 months
- For film: Not more than 70% of the value of the contract
- For equipment and accessories: Not more than 70% of the cost
- Budgeted recording, production or performance: 90% of the budget
- Must be registered with the relevant authorized body (e.g for music, Music Copyright Society of Kenya).
- Must have a valid contract where applicable
- For music, must have evidence of recorded audio or video or evidence of work in progress.
- Must have a budget accompanied by invoices or quotations where applicable.
- Undertaking by contracting entity to pay the proceeds to Youth Enterprise Development Fund
- Must have 2 guarantors who must provide bank statements, one of whom must be operating in the industry. In the absence of this, the applicant must provide a conventional security.
How to Apply
Youth fund loans are granted at the Constituency level so the constituency offices would be able to process applications through their youth wings.
- You can either apply as an Individual or a group. All you need to do is to visit your respective constituency/sub county Youth offices.
- Download the C-YES Special Form 1D and fill the loan application forms and attach all the required documents.
- Turn in the documents to the constituency/sub county Youth office and wait for the loans officer response
- The Loans officer will then guide you all other necessary steps.
- They will also provide training, vetting, and other necessary information.
- Use the loan for the purpose applied for.