KCCA to create 3,300 jobs from youth fund

Kampala Capital City Authority (KCCA) has set an ambitious target of creating at least 3,300 jobs every cycle from its portion of the Shs45b youth fund announced in the budget last year. KCCA received a Shs5b slice from the fund for which it has now released guidelines for access.

The Authority which has Shs5b to invest in young people under the scheme says expectant applicants have to be organised in groups and must demonstrate in their application proposals that their ideas will create a specific number of jobs and demonstrate sustainability as businesses that will stay alive for at least three years.

KCCA Head of Communications, Mr Peter Kaujju said at-least Shs3.3b will directly be allocated to different youth groups for jobs stimulation. The authority will require applicants to form groups of a minimum of five people which will then be eligible for a Shs5m soft loan. The payback, which will be restricted to four equal installments will start after a one year period. The authority hopes after payback more money will be freed for investment in new youth groups.

He said KCCA has already employed over 1,000 youth in cleaning, enforcement and beatification of the city under the same youth package

KCCA Director for Gender and Community Service, Ms Harriet Mulondo , told Jobs and Career that the funds will be accessed only by those living in Kampala and the projects must be based here.

Seven main conditions are attached to the money each with various sub heads ranging from an eligibility criteria, focus sectors, conditions (general), financial conditions, project duration and security, Fund amount and other considerations.

According to the eligibility criteria issued by the authority only groups of unemployed males and females between the ages of 18-35 years qualify for the fund.

“The youth and graduates on the streets are not the only targeted people. Even those in low cluster jobs like bakery, washing bay can benefit from this fund,” Ms Mulondo said at City Hall this week adding, “the young people can now start asking for the money, the implementation structure has delayed the process”.

Like conditions on the mother fund applicants must register a business and show proof of nationality. The group sizes can range from five to 25. “The funds are payable after one year without any interest,” Ms Mulondo said.

There are no accurate unemployment figures in Uganda but estimates indicate that only a fraction of graduates with some form of qualification get absorbed in the limited formal job market. At least 400,000 graduate each year but projects registered by the Uganda Investment Authority indicate a potential to create only about 150,000 jobs in the private sector annually, leaving an estimated 350,000 on the street

The youth fund was started with an objective of stimulating employment by facilitating youths to become job creators other than job seekers. The fund puts emphasis on artisanship and entrepreneurship where experts say the country’s hopes for transformation and absorption of the large workforce of young people lie. But critics of the scheme question the many conditions attached to it. It is also not clear whether government worked out the mechanics to have a clear position on how far the money can go in dealing with the problem.

The critics have pointed to previous failed efforts where government focused on throwing money at a problem rather than addressing the fundamentals like skills. A common example has been the 1997 Entandikwa scheme, interpreted by beneficiaries as a “Thank You” fund from the President after President Museveni was elected in his first elective contest. The youth Fund coming in the year after Mr Mjuseveni was re-elected in a campaign that relied heavily and worked hard to win the youth vote could face similar risks.

The project aims most at developing creative artisanal industry ranging from value addition, textile, weaving and bidding, agro processing, trade and commerce, catering and bakery, recycling, carpentry motor and electric mechanics among others.

How to get the money
• Applicants shall have duration of six months to three years to return the money depending on the project. But a grace period of one year will be given and after funds are recovered in four equal installments.
•Beneficiaries must have at least two guarantees that must be of good standing in the society.
•Interested applicants shall prepare and present a project proposal using an application form given out at KCCA head office.
• Beneficiaries of other on-going government projects shall not be eligible upon assessment of previous and current grant performance.
•Applicants are entitled to one-time allocation of a maximum of Shs25 million depending on the number of jobs to be created and number of applicants.
•Capital Investments will not exceed Sh25million, except for the KCCA led enterprises. An investment of this class must create between 25-30 jobs.
•Funds should not be used to buy buildings, vehicles, rent, transport and other overhead project costs.
•Community and institutional procurement [KCCA] shall be used. All procurement above Sh2, 000,000 shall be handled by KCCA.

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