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