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The government has confirmed plans to join the saturated loaning market.
The Y-Mobile App is a brainchild of the Youth Enterprise Development Fund and will be launched in April 2019 to disburse loans to Kenyans.
Youth Fund Chairman Ronald Osumba revealed that the state corporation was seeking Ksh300 million from the National Treasury as part of efforts to provide more loans.
Youth Fund Chairman Ronald Osumba
“The demand is high and it is expensive to devolve officers to county and sub-county levels. I would rather have a platform which is accessible to somebody in a remote village,” stated Osumba.
The fund noted that 80 per cent of the requests received were for short-term loans which could be effectively disbursed through the app.
In 2018, the government also announced a plan to merge affirmative action funds into one organisation.
The institutions that will be consolidated include Kenya Industrial Estates, Development Bank of Kenya, Industrial Bank of Kenya, Women Enterprise Development Fund, Youth Enterprise Fund and Uwezo Fund.
Speaking to Daily Active, Osumba stated that upon the merger, the loan app will be expanded to serve the larger population targeted by the new entity.
Will this improve the living standard for the youth?