Treasury Secretary Ukur Yatani has capped loans to be accessed by businesses owned by youth, women and disabled people under the new Biashara Kenya Fund that will receive Sh2.5 billion to start operations.
Mr Yatani has also lowered the maximum loan for a single borrower under the Fund to Sh2.5 million in the refreshed Public Finance Management (Biashara Kenya Fund) Regulations 2021 from Sh3 million in the previous rules unveiled last year.
The new regulations will guide the operations of the Biashara Kenya Fund and end a seven-year process to merge Uwezo Fund, Youth Enterprise Development Fund (YEF) and Women Enterprise Fund (WEF).
The process of establishing a single affirmative action fund followed a recommendation in the Presidential Task Force on Parastatal Reform Report of 2014 to remove duplication of roles, cut overheads and enhance efficiency.
Women- and youth-owned enterprises will each get a 35 percent share of the loans under the Fund, while businesses owned by persons with disability will access up to 10 percent.
The share for micro-, small- and medium-sized enterprises has been capped at 17 percent of the available loans while the remaining three percent will cater for administrative expenses.