About The Loan
The LPO/LSO financing loan targets youth entrepreneurs and youth-owned firms participating in public procurement opportunities who require funding to facilitate the execution of LPO/LSO contracts. The Fund will finance up to 70% value of the LPO/LSO
Eligibility:
- Original and valid LPO/LSO or copy of contract
- Procuring entity must agree to pay tender proceeds to Youth Enterprise Development Fund Board
Eligible Procuring Entities:
- Government ministries, parastatals, agencies, county governments, constitutional commissions
- NSE-listed companies, infrastructure companies with large government contracts
- Credible NGOs (in consultation with NGO Council)
- International development organizations (risk level considered)
- Other credible private institutions (schools, hospitals, companies, etc.)
Loan Amount:
- Minimum: Kshs. 20,000
- Maximum: Kshs. 3 million
Collateral/Security:
- Certificate of Undertaking endorsed by procuring officer and accounting officer
- Loans up to Kshs.. 100,000:
- Secured by chattels, stock, business assets, or simple deposit of conventional security
- Two guarantors required
- Loans above Kshs.. 100,000:
- Secured by conventional securities