President Uhuru Kenyatta on Wednesday promised Sh1.3 billion as business grants to the 750 youths finalists of the just concluded MbeleNaBiz competition.

In the ceremony also graced by the World Bank, the Head of State said the youths have restored faith in power of dreams amongst the young Kenyans.

He said the Sh1.3 billion grants will be disbursed through the Kenya Youth Employment and Opportunities Project(KYEOP).

“Of this amount, a total of 900 million shillings will go to 250 young entrepreneurs as grants. Each of these young entrepreneurs will receive an award of 3.6 million shillings to develop their dreams. The balance of 450 million shillings, will be given as grants to the other 500 winners. Each of these winners will get a total of 900,000 shillings to develop their innovations and ideas,” said Uhuru Kenyatta at Kasarani, Nairobi.

President Kenyatta lauded the Building Bridges Initiative(BBI) saying it will create an enabling environment for businesses owned by youths through a seven-year tax holiday.

“Through the legislative aspect of BBI, we intend to provide a seven-year tax holiday for young entrepreneurs like the 750 grantees of this project,” he said.

He said the BBI if passed will save up to 30 percent of the annual profits that the youth-owned businesses would have otherwise paid to the taxman.

“And to bring it closer home, if the 250 young entrepreneurs were to earn an average of 150,000 shillings every month from their initial grant of 3.6 million, they would collectively make 37.5 million shillings a month in profit,” he said.

The President also launched the third phase of the Youth Enterprise Fund covering 2020-2024. He said the fund will increase from Sh4.5 billion to Sh5.5 billion and raise the loan disbursements from Sh.13.5 billion to Sh.16 billion.

He reinstated his administrations commitment in assisting youth initiatives.