Talk is Cheap
If the Uwezo fund was to fail, a lot of young Kenyan entrepreneurs will see their dreams of starting a business go out in flames. From a noble idea to one that needs the whole nation supporting it, this entrepreneur loan program is one of its kind in the whole world.
That is the question a lot of young people are asking themselves one year after the launch of the uwezo fund Kenya. The fund was set up specifically to address the issue of lack of capital for most. Kenyan banks are notorious for failing to give any loans to young businesses. In fact the common joke is that the only reason you can get a loan in Kenya is when you don’t need it..
When you think about it, no one needs a loan that makes you pay back more than you borrowed. That is why it must succeed. You can see the young entreprenuers discussing the success of the uwezo fund at nabudi.com.
That is very true especially for those who have tried to start a business in Kenya. The banks don’t give out loans and when they do, they charge an arm and a leg. Consider the case where they charge no less than 20% on their interest rates. They then demand collateral such as a car or a piece of land. For most young people, owning a car is the reason they started a business in the first place.
The Uwezo fund was set up with the goal of reducing the over-reliance on bank loans. They are too expensive for start up business and are impossible to get. With the Uwezo fund in Kenya. All that the young entrepreneur has to do is prove that they have a business idea. The government would then fund it at low rates.
But as with most government projects, there is very little information about the fund. A quick look at the uwezo fund facebook page reveals a lot of youth desperate for information. The problem is that the moment the uwezo fund website was set-up, it quickly disappeared. When it comes to the number of applications that have been made in the fund the situation is more dire. Infact, there is no information on whether any loans have ever been given to anyone. We are back to square one in terms of helping the young entrepreneurs succeed.
But all is not lost. Only good things happen for the positive thinkers
There is hope in that there is no way the gov’t can allow such a noble idea disappear in the mist. Somehow someway, the uwezo fund will succeed.