BOARD PERFORMANCE

REPORT June2016–May2019

RonaldOsumbaChairman,YouthFundBoard

Situational Analysis

Turnaround Strategy Inconsultationwithvariousstakeholders,theBoardofferedguidanceandstrategicdirectiontopurposelychanneltheFund’savailableresourcestoidentifiedpriorityareas.

TheBoardidentifiedpriorityareaswhichformedthedeliverablesforthefirst100daysundertheRRIprogramme.ThiswasaimedatstrengtheninginternalprocesseswithaviewtoenhancingoutputintheFund’sfunctionalareas.

Enhanceemployeedevelopment,performanceandretention

Fundproductsmoreattractiveandcompetitive,theBoardsetouttoimproveonuptake

Toguaranteeoperationalefficiencyandeffectiveness,theBoardmadedeliberateeffortstostrengtheninternalprocesses

Developmentoffunctionalpoliciesandprocedurestoenhancestandardization,consistencyandoverallefficiency

EstablishmentofstrategicpartnershipswithkeystakeholderstoenhancetheFund’sreachandlong-termsustainability

Governance

1.BoardCharter

ThecharterdefinestheBoard’srolesandresponsibilitiesaswellasfunctionsandstructuresthatsupportmembersincarryingouttheirstrategicoversightfunction.

2.Induction&ContinuousSkillsDevelopment

Inordertoprovidedirectionforeffectivegovernanceandoversight,BoardmemberswereenrolledforaninductionprogrammeonMwongozo,facilitatedbySCAC.

3.AnnualWorkPlan

TheBoarddevelopedannualworkplanstogovernallitsprogrammes.ThisensuredmeetingsandotherscheduledactivitieswereconductedasguidedbytheStateCorporationsActandMwongozoCodeofGovernance.

4.BoardEvaluation

InitsfirstperformanceevaluationinFY2016/17,facilitatedbySCAC,theBoard’saggregatescorewas87.7percent.Thisimprovedto89.47percentinFY2017/18

Cumulative Achievements

Business Development and Support Services

5,4005,5005,6005,7005,8005,9006,0006,100

FY2006-15 FY2016-19

5,644

6,070

No.ofYouth

107%Uptake increase in the last three years

150modern market stalls in

addition to the existing 15 units.

6,650Number of Youth facilitated

1.   EntrepreneurshipTraining,MentorshipandCoaching

2.  MarketSupportandLinkages

3.   CommercialInfrastructure

4.   YESAProgramme

5.   AccesstoGovernmentProcurementOpportunities

6.   YouthInternship

Programme

52%326,000, 000

Percentage of reserved procurement expenditure for

AGPO category

Total LPO amount advanced in the last three years benefiting 525 youth

230Numbers of Youths offered industrial attachment and

internship by the Fund in the last three years

The revised credit policy was adopted

Fund saw an immediate and significant upsurge in loan uptake. In the first half of FY 2017/18, the Fund disbursed a total of

Sh376 million, which was 101 percent more than the amount disbursed in a

similar period the previous year.

Aggregately, in FY 2017/18, a total of Sh549 million was disbursed to 109,840 youth, representing a 57 percent improvement

compared to the FY 2016/17.

Number of youth who received funding in

FY 2017/18

101%57%

376,000,000549,000,000

109,840

Increase compared to FY 2016/17

Improved loan disbursementin FY 2017/18

Re-engineeringofLoanProducts

0.00

100,000,000.00

200,000,000.00

300,000,000.00

400,000,000.00

500,000,000.00

600,000,000.00

2015/16 2016/17 2017/18 2018/19

Disbursements

Projected Disbursements

Sh. 433m

Sh. 514m

Average between 2013-2016

During the Board term

LoanDisbursements

0.00

100,000,000.00

200,000,000.00

300,000,000.00

400,000,000.00

500,000,000.00

600,000,000.00

2015/16 2016/17 2017/18 2018/19

Loan Repayments

Repayments

Projected Repayments. Projected Repayments

58%

88%Average between 2013-2016

During the Board term

LoanRepaymentsSummary

Financial Management

Sh. 201,614,139

Sh. 53,265,605

Deficit reported in FY 2014/15

Deficit reported in FY 2018/19

FinancialPerformance

Duringitstenure,theBoardensuredprudenceintheFund’sfinancialmanagementprocesses,significantlyreducingitsdeficit

RevolvingFund

Overthelastthreeyears,theFundhasgrownitsrevolvingfundfromSh2.7billionintheFY2015/16to

Sh3.8billioninFY2018/19.

Sh. 2.7bn

Sh. 3.8bn

in FY 2015/16

Revolving fund up in FY 2018/19

from...

$

$

BudgetaryAllocation

DevelopmentgrantallocationgrewfromSh105,336,000inFY2014/15toSh335,

336,000inFY2019/20.

Strategic Partnerships

TheFunddevelopedapolicyandstrategyforcontinualprospecting,developmentand

managementofstrategicrelationshipswithcredibleorganizationsinboththepublicandprivatesectors.

PublicSectorsPartners

PrivateSectorPartners

Impact investment

AnewstudybyUS-basedconsultancyFRLLCandUniversityofVirginiaBusinessSchoolshows.

“SocialimpactcapitalisagrowinginvestmentflowinKenyarepresentingupto$600millioninshareholdingsinover200companiesinEastAfricawithanadditional$650millioninthepipelineforinvestment,”thesurveyreportreads.

“Whilepreviouslyinvestinginstart-upandearlystagegrowthcompanies,socialimpactinvestorsarenowcompetingforexpansiondealsof$3millionto$5million.”

Theentryofimpactinvestorsintothelocaldealsscenehasseenthemcompeteforthelimitednumberofviablestartupswithmoretraditionalprivateequityfirms,whichhashadtheeffectofdistortingthemarketbydrivingupvaluationsofpotentialtargets.

“CompetitionbetweensocialimpactinvestorsandPEfundshaddrivenvaluationsbytwotothreetimesoverthelastfiveyears,”saidthereport.

Thefindingsofthereportarebasedon14casestudiesofearlystageSMEsandapollof16representativesoffinancialandprivateequityfirms.

Totheyouth;embraceyourchancetoleadbyseizingtheopportunity

andturningitintotangibleachievement.Youmuststandup,offeryourselves,

dedicateyourselves,shoulderresponsibility,andcarrytheworldintothefuture.

~HisExcellencyPresidentUhuruKenyatta