Friday, August 14, 2009

Youth Enterprise Development Fund Board Tender Notice

Youth Enterprise Development Fund Board

Expression of Interest for the Provision of Financial Products and Services to Youth Enterprises under the Credit Guarantee Scheme

The Youth Enterprise Development Fund Board is a newly established State Corporation whose major mandate is to provide economic empowerment to young people through enterprise development initiatives.

One of the key objectives of the Fund is to facilitate access to markets for goods and services produced by youth owned enterprises.

The Government of Kenya has committed to set aside 10% of its annual procurement budget for youth owned enterprises.

This initiative is expected to translate to over Ksh.15 Billion being set aside by government for the procurement of goods and services from youth owned enterprises.'

The Fund has identified lack of adequate financial strength as one of the major challenges that youth owned enterprises face in their attempt to win government supply contracts.

Subsequently, the Fund has identified a number of financial products and services that will assist youth owned enterprises easily access these government contracts. These products and services include Bid and Performance Bonds, Local Purchase/Service Orders (LPO/LSO) financing, invoice factoring and business loans.

The Fund is therefore inviting expressions of interest from reputable and credible financial services providers to facilitate access to these products by youth owned enterprises.

In addition, the Fund will provide incentives to qualifying financial services providers to finance innovative business ideas from the youth, that have great potential to generate employment opportunities.

Those wishing to express interest should fulfill the following criteria:
  • Must be in existence for at least the last 5 years
  • Must have experience in the provision of financial products relevant to procurement of products/services for not less than two years
  • Provide the current product features, conditions and pricing relevant to each financial product.
  • Propose product features, conditions and pricing suitable for youth enterprises in each of the financial products.
  • Must be willing to partner with the Fund in developing and rolling out a start-up business loan product for the Kenyan youth.
  • Must be willing to leverage Fund's contribution and proposed leverage ratio. Please also propose risk-sharing ratio where applicable and expected financing level.
  • Provide operational mechanisms to ease access and to mitigate inherent risks.
  • Provide current branch network
  • Any other innovative ideas and approaches that will optimize opportunities to youth enterprises and also improve of your chances of favourable consideration.
Institutions providing sharia-compliant financial products are encouraged to apply.
Complete expressions of interest enclosed in a sealed envelope clearly marked 'CREDIT GUARANTEE-2009' should reach the Board on or before 28th August 2009 at the address below:

The Chief Executive Officer
Youth Enterprise Development Fund Board
8th Fir, National Bank Building, Harambee Avenue
P.O. Box 48610-00100
NAIROBI

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