Dar es Salaam. The Ministry of Youth Development has outlined guidelines for the youth on how to apply for and benefit from the Sh200 billion loans announced by the government to economically empower them.
In guidelines issued on Saturday, March 21, 2026, the government explained that applicants may be individuals or groups and must have a project or business proposal, a bank account or registered phone number in the name of the applicant or group, and submit a formal application letter detailing the type of project, loan amount and implementation area.
Additionally, key documents include a National Identification Card (Nida) or voter ID, taxpayer identification number (TIN), a business licence for those already operating, an introduction letter from local government authorities and two passport-size photographs of the applicant.
All applications must be submitted before April 3, 2026 through the special email [email protected].
The move responds to complaints and proposals from young people who, since the announcement of the funds, have raised concerns over a lack of transparency in access procedures and called for a clear and inclusive system.
Various youth groups, including those from political parties, activists and business groups, have expressed confusion over the distribution of the funds, allocation criteria and responsible supervising institutions, with some claiming that the information provided is incomplete.
Despite the funds’ objective of addressing employment and capital challenges and boosting the youth economy, debate has persisted over how best to ensure the funds reach intended beneficiaries fairly and efficiently, prompting pressure for formal national guidelines.
What youth are complaining about
Among the key concerns raised is the lack of transparency in accessing the funds, with claims that previously provided information was insufficient.
“The disbursement system is not clear; many young people do not know where to start or the criteria used,” said ACT Wazalendo Youth Wing chairman Abdul Nondo while speaking to journalists in Dar es Salaam.
He also questioned the absence of a body with a direct mandate to oversee the funds, warning that this could create loopholes for favouritism and misuse.
“The absence of clear supervision may open loopholes for favouritism and improper use,” he emphasised.
On the other hand, the Youth Unit of the Civic United Front criticised the distribution of the funds across different ministries, saying the move reduces direct accountability and increases bureaucracy.
“If the funds were specifically for youth, why not remain under the Ministry of Youth?” asked the opposition party's national project officer Masoud Mambo while speaking to various media outlets recently.
Meanwhile, the party's youth wing (Juvicuf) has complained that there is still no official information showing the amount allocated to each ministry, arguing that this makes it difficult to track utilisation of the funds.
“The lack of transparency creates a difficult environment for evaluation and monitoring,” part of the wings statement said.
Beyond the complaints, young people have also proposed urgent reforms to ensure the funds are beneficial. These include the development of a single national guideline clearly outlining the disbursement process, criteria, repayment conditions and all ministries that received the funds.
However, the government, through its guidelines, has clarified the application procedures and required criteria, emphasising that the process will be transparent and accessible to all young people.
According to the statement, “the applicant will be required to submit an application letter stating the name, type of project, loan amount and implementation area, together with all required documents.”
The government added that the system is designed to ensure the funds reach intended beneficiaries and generate positive outcomes for the youth economy.
The move signals the start of implementation of the programme, which has for some time sparked wide debate, with many now watching whether the guidelines will be effectively implemented and deliver the intended results.
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