President Uhuru Kenyatta on Wednesday said the government, through the Kenya Youth Employment and Opportunities Project (KYEOP), will inject a total of Ksh1.3 billion into the Youth Economy.
President Kenyatta, who spoke during the award ceremony for the ‘MbeleNaBiz’ winners at the Moi International Sports Center, said Ksh.900 million of that amount will go to 250 young entrepreneurs as grants.
Each of the entrepreneurs will receive Ksh.3.6 million, and the balance of Ksh.450 million will then be given as grants to the other 500 winners, each of whom will get Ksh.900,000 to develop their innovations.
“On our part as government, we will support these innovations by creating an enabling environment for start-ups by young people. In fact, the BBI initiative, which is about constitutional change and legislative change as well, will facilitate this process. Through the legislative aspect of BBI, we intend to provide a seven-year tax holiday for young entrepreneurs like the 750 grantees of this project,” he said.
“…this is what a tax holiday is to your pocket. If for instance, one of the grantees of this project decides to start a nail-making business, he or she plans to spend about Ksh.1.2 million buying the necessary equipment and setting up. Market estimates suggest that the net returns to such a start-up business would be about Ksh.150,000 a month or Ksh.1.8 million a year.”
He added: “In a normal tax scenario, the young entrepreneur would owe KRA about Ksh.540,000 of the Ksh.1.8 million profit each year. And in 7 years, they would have paid KRA approximately Ksh.3.7 million in taxes. But with the proposed BBI tax holiday, such an enterprise by a young person would not only save the Ksh.3.7 million in seven years, but will have generated a total of Ksh.12.6 million in the seven years.”
President Kenyatta also oversaw the launch of the 3rd cycle Strategic Plan of the Youth Enterprise Development Fund covering the period 2020-2024.
The fund, according to a statement to newsrooms by State House, has so far supported 2 million youth with loans worth Ksh.13.5 billion.
The Head of State said the fund has disbursed a total of Ksh.501 million in loans since the first case of COVID-19 was reported in Kenya, which have helped to sustain youth-owned enterprises.
“As a caring Government and as an Administration that is responsive to the aspirations of all Kenyans, we will continue to create an enabling environment in which every citizen, including the young people can harness their potential,” he added.
“We will continue to support our young people by easing of doing business. We will continue to implement ground-breaking policies and strategies such as the e-citizen online portal that offers access to information and government services; Affirmative Action Funds, such as the Youth Fund to provide affordable financial and business development support services; Huduma Centres that provide Public Services and information from One Stop Shop citizen service centres; ihubs to support tech entrepreneurs; Access to Government Procurement Opportunities; among other strategies.”
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