This archive report was first published on 19 May 2020.
On April 1, the Youth Enterprise Development Fund (YEF) initiated a moratorium on loan repayments for youth-owned small-medium enterprises financed by the fund.
According to YEF's acting chief executive, Benson Muthendi, the decision was made to cushion beneficiaries from the impact of the Covid-19 pandemic.
"It's a case by case basis. We are also looking at member's previous payment history," Muthendi explained in a telephone interview with the Business Daily.
The fund has also suspended blacklisting of youth-owned enterprises whose loan accounts fall overdue or in arrears.
Additionally, YEF has agreed not to recall security deposits from clients who take high premium loans if they default during this period.
The relief to borrowers will end once the fund is satisfied that the youth-owned enterprises are not affected by the coronavirus pandemic.
YEF's decision to offer relief to borrowers comes as the country continues to grapple with the economic impact of the pandemic.
