The UN Economic Commission for Africa estimates Africa’s growth will drop by 1.4% from 3.2% to 1.8 % as a result of the corona virus. Among other things, the decline is due to disruption of global supply chains and a crash in oil prices that will cost up to US$65 billion in export revenues.1Even with the governments measures instituted to curb the spread, the effects of the virus are ubiquitous and have seen an exacerbation of psychosocial distress , sexual and gender abuse with a projection of 1 in every 4 Kenyans having mental health problems as indicated by PDO Kenya 2015-2030 Mental Health Policy. The social economic impact is far reaching with youth being disproportionately affected. The loss of sources of livehoods occasioned by Covid19 has in turn increased vulnerability to anxiety, rendering most unable to support households. This to a great extent has led to youth seeking later native sources of sustenance including transactional sex, crime among others. (World Bank 2019 survey on labor)
This project acknowledges the need and seeks to support the youth sources of livehood to mitigate the social economic challenges ocassioned by the novel virus . It targets vulnerable youth beneficiaries in SME’s from Violent Extremism hot spot in Kisauni.
DAYO Revolving funds:
DAYO’s revolving fund basket was born in response to the rising demands from the youth fraternity in Mombasa for DAYO to institute a fund base that had less bureaucracy to access and that would be competitive allowing the youth to pitch bankable business proposals for funding. The same would have flexible repayment periods to allow youth to grow their businesses. This fund of 500,000/-Ksh was powered by Kenya Bakers association (KBA) in collaboration with KCDF. Since its initiation, it’s been disbursed to youth groups and individual youth who have undergone Entrepreneurship and Financial literacy training.
The loaning and repayment has been ongoing since its institution, however the challenges faced include - defaulting in repayment, Late monthly loan repayment, Business collapse occasioned by the Corona virus and other factors like relocation.
Owing to the current Covid -19 status most youth have asked that they defer repayments since a few businesses have collapsed and some need refinancing to be revitalized.
Proposed key intervention
IDEA i:Technical and Business development skills training: This will entail provision of necessary skills required to establish the affordable business ideas identified e.g in producing homemade soap & detergent, green grocery, snacks & drinks. This will also provide support in development of bankable business and marketing plans for the technical business ideas that they will have identified and trained on.
IDEA ii: Provision loans: DAYO will mobilize financial resources on behalf of its beneficiaries and support them to pursue their bankable projects. DAYO will create a financial kitty with Kshs. 300,000 from the Fufua Bi-ashara project as well as contribute Kshs. 100,000 from its already existing fund to support the beneficiaries recover/boost their businesses. The revolving kitty will have Kes 400,000.
• Financial Management: This will entail Maintaining of an internal financial management system for managing credit and conducting business capacity assessments on beneficiary businesses and build capacity on identified risk areas to reduce fiduciary risk
• Manage loan repayments: DAYO will utilize the existing loan repayment model that will recover the premium advanced besides the 10% interest from credit facility provided to beneficiaries. A grace repayment period of 2 months will be given during this covid-19 pandemic.
IDEA iii: Psychosocial support: To improve and address mental health DAYO will in cooperate mental health and well being session to project beneficiaries. This will be done through group therapy sessions lead by a psychological counselor and through the creation of Mental health integrated key messages in mainstream and other social media platforms.
IDEA iv: This will entail sensitization on Covid -19 via social media platform. DAYO will ensure that information relating to Covid-19 is collected, collated, and disseminated through the various social media platforms including website, WhatsApp, Facebook, twitter, instagram among others. This will ensure that a wider audience is reached.