Supporting youth employment and entrepreneurship

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

The project implemented by the International Fund for Agricultural Development (IFAD) in 2023-2027 aims to create livelihoods and employment opportunities for young women and men in the field of green agriculture business by improving their business skills and the availability of commercial funding. At the moment, approximately 75% of Kenyans are under 35 years of age, and an estimated one million young people enter the labour market every year, but only 200,000 find a job. In particular, the support responds to the problems of youth unemployment, agricultural business and the growth of micro, small and medium-sized enterprises (SMEs), which are all key challenges to Kenya’s economic growth and sustainable development. The purpose of the project is to strengthen the capacity of young women and men to set up and lead green SMEs in rural areas, to strengthen the capacity of SMEs to expand their activities and offer decent work to young people in rural areas, and to improve the availability of green financing for creating jobs for young people. The project aims to reduce risks through a guarantee system and strengthen the capacity of financial institutions to offer financial products to young entrepreneurs and companies that employ young people. The project is part of a larger funding package “Rural Kenya Financial inclusion Facility” (RK-FINFA 2022-2027), which is why its impact may be many times greater than that of a single technical assistance project (the budget of the project supported by Finland that focuses on young people in particular is EUR 8.54 million, of which Finland’s share is EUR 8 million; whereas the total budget of RK-FINFA is estimated at about EUR 125 million). The RK-FINFA programme promotes the creation of innovative and sustainable production systems, creates equal employment opportunities in rural areas and increases the income of smallholder farmers, poor and marginalised households as well as young people and women. By improving the efficiency and climate sustainability of food production, the project will also strengthen Kenya’s food security.