President William Ruto has unveiled plans to set up a financial institution dubbed the Youth Enterprise Investment Bank, specifically aimed at supporting young entrepreneurs.

Speaking on Tuesday, August 12, at the International Youth Day celebrations at Masinde Muliro University in Kakamega, he revealed that the bank would offer financing and credit guarantees to youth-led businesses.

“To further support youth-led enterprises, we shall, before the end of this financial year, launch the Youth Entrepreneurship Investment Bank (YEIB), capitalised at $75 million (Ksh9.75 billion), to provide financing, credit guarantees, and capacity-building for youth enterprises,” he said.

The President said the initiative is part of a broader government plan to boost financial inclusion and create long-term economic opportunities for young people, who make up the largest share of Kenya’s population.

He explained that the new institution will be designed to tackle common hurdles faced by youth-led businesses, including a lack of collateral, high interest rates, and limited access to business development training. 

The rollout is expected before the end of the year to give more young Kenyans the tools and resources needed to launch, expand, and sustain their ventures.

Kenya’s government already holds stakes in several commercial and development banks — ranging from minority shares of under 20 per cent to full ownership — either directly through the National Treasury or via state corporations and parastatals.

Out of the 39-plus licensed banks in the country, the state has interests in at least six, enabling it to influence strategic direction and use these institutions to advance policy goals such as financial inclusion, mortgage access, and SME growth.

However, Ruto did not give details on the ownership structure or operational framework of the upcoming Youth Enterprise Investment Bank.

“In 2018, TVET enrolment stood at about 180,000 learners. Today, it exceeds 700,000, supported by the expansion of institutions from just about 50 a decade ago to more than 250 nationwide. 

“Through the National Government Apprenticeship Opportunities (NGAO) programme, we aim to enrol two million youth in TVET institutions by the end of 2025, meeting the projected annual demand for 300,000 additional skilled workers and bridging the skills gap that is currently at 40% in some technical sectors,” he stated.

Ruto underscored the Affordable Housing Programme’s role in generating employment, noting that more opportunities will be created in the coming months. 

He pointed out that over 161,000 housing units are currently under construction nationwide as part of a 700,000-home pipeline expected to create more than one million jobs. 

Around 320,000 people are already employed under the programme, with the figure projected to double within two months.

He also announced the introduction of new internship opportunities for young professionals in the housing sector.

“We have already advertised 4,000 internship positions for young professionals in the housing sector. Through the Public Service Commission, we will engage architects, engineers, surveyors, IT specialists, marketers, and other specialists, placing them in housing projects and municipalities across the country. 

“Our goal is to expand these opportunities so that, by January 2026, 10,000 interns will have been placed in the Affordable Housing Programme, where they will gain skills, build networks, and acquire the experience needed to launch their careers,” he further said.