Ruto announces single-digit interest loans for manufacturers, targets 150,000 youth internships

President William Ruto has announced plans to establish an industrialisation fund offering manufacturers single-digit interest loans as part of efforts to increase local production and create jobs.

Speaking during the Changamka Festival at KICC, Nairobi on Wednesday, Ruto said the fund, which is in its final stages of establishment, would provide affordable financing to small-scale manufacturers seeking loans ranging from Sh5 million to Sh20 million, with plans to extend the facility to businesses requiring up to Sh200 million.

"We are in the final stages of creating an industrialisation fund that will now lend money at single digit to enterprises that want to engage in manufacturing," he said.

The President also challenged manufacturers to partner with the government in providing internship opportunities for up to 150,000 young people annually.

He said the government would initially provide 50,000 one-year internship opportunities from January, including 15,000 positions in public institutions, but the number could increase through partnerships with the private sector.

To encourage businesses to participate, Ruto proposed allowing companies to deduct 100 per cent of the stipends paid to interns from their taxes.

"If you pay them in the course of their internship, Sh250,000, you can net off the whole of Sh250,000 from your taxes," he said.

The President said the programme would help bridge the gap between classroom learning and workplace requirements, while giving employers an opportunity to train and identify potential workers.

Ruto said the government was targeting a 20 per cent manufacturing contribution to the country's Gross Domestic Product (GDP) and one million jobs under its industrialisation roadmap.

He noted that manufacturing contributed 7.1 per cent to GDP in 2025, growing by two per cent against overall economic growth of 4.6%.

The President cited investments in cement and steel manufacturing, saying measures to discourage imports had attracted nearly Sh108 billion in cement-related investments expected to create 12,000 jobs.

He added that affordable housing was creating new opportunities for local industries, with 97 per cent of materials used in the programme sourced locally.

Ruto also announced plans to expand opportunities for local footwear manufacturers, urging them to prepare to supply shoes for the country's 14 million school-going children.

"We want you to manufacture all the shoes for our school-going children, and we have 14 million of them," he said.

He said the government would continue supporting local manufacturers through industrial parks, market access and policies aimed at reducing dependence on imported products.