Muhoozi Unveils Shs1 Billion MK Fund Targeting Urban Youth and Innovators

The Chief of Defence Forces, Muhoozi Kainerugaba, on Tuesday presided over the first-ever meeting of the MK Fund, marking the official start of an initiative aimed at financially supporting young Ugandans with promising ideas.

The inaugural meeting of the Fund’s Board of Trustees took place in Fort Portal and laid the groundwork for what Gen Muhoozi described as a program intended to empower vulnerable groups, particularly urban youth who often struggle to access startup capital.

Speaking during the meeting, Gen Muhoozi explained that the MK Fund will not operate independently but will instead complement existing government development initiatives, especially the Parish Development Model (PDM). According to him, the program is designed to support communities by promoting economic empowerment at the grassroots level.

He noted that the MK Fund will specifically focus on groups that may not be fully reached by government programs, particularly young people living in urban areas who possess innovative ideas but lack financial resources to turn them into practical business ventures.

Gen Muhoozi, who serves as the chairperson of the Board of Trustees, explained that the board’s main role will be to provide leadership and strategic direction for the Fund while ensuring that its operations remain transparent and effective. He said the trustees will guide the overall vision of the initiative and supervise how the available resources are distributed.

To maintain accountability and fairness in the allocation of funds, Gen Muhoozi said the board will establish a review committee. This committee will be responsible for examining and evaluating applications submitted by individuals seeking financial assistance from the Fund.

The committee will review business proposals and determine which applicants qualify to receive funding under the program.

The Board of Trustees includes a number of prominent figures in government and public life. Among them is Jane Ruth Aceng, the Minister of Health, and Frank Tumwebaze, the Minister of Agriculture.

Other members include Edwin Karugire, who serves as the Fund’s secretary, and veteran journalist Andrew Mwenda, who also sits on the board.

Through this initiative, the MK Fund plans to provide seed grants to young innovators with promising business ideas in sectors considered vital to Uganda’s economic growth. These sectors include commercial agriculture, local manufacturing, and the rapidly expanding information and communications technology industry.

The financial assistance will come in the form of seed grants intended to help beneficiaries start or expand their businesses. Each successful applicant will receive no more than one million Ugandan shillings in cash.

Importantly, the recipients will not be required to repay the money since the initiative is structured as a grant program rather than a loan scheme.

Explaining the philosophy behind the initiative, Gen Muhoozi emphasized that the true measure of success will be the achievements of the beneficiaries themselves.

“The only pay back will be the success of the recipient,” Gen Muhoozi said.

To ensure the process is accessible and transparent, the Fund plans to establish an official website where interested applicants will be able to submit their proposals online.

The website will also contain detailed information outlining the eligibility requirements and the procedures that applicants must follow in order to access the funding.

Although the Fund will initially begin with a capital base of one billion shillings, Gen Muhoozi explained that the Board of Trustees is already exploring ways to expand its financial capacity.

He noted that the trustees will look for strategies to grow the Fund over time so that it does not run out of resources and can continue supporting a larger number of beneficiaries across the country.

In order to promote inclusivity, the MK Fund has committed to ensuring that at least 30 percent of the grants will be awarded to female applicants.

The trustees also intend to maintain regional balance in the distribution of funds so that beneficiaries come from different parts of Uganda rather than being concentrated in a few areas.

To manage the program effectively, the Fund will establish a small secretariat responsible for administrative duties such as processing applications, evaluating candidates, and monitoring the progress of businesses established by beneficiaries.

The secretariat will also conduct monitoring and evaluation to ensure that the grants are being used productively and that the initiative achieves its intended goal of empowering young entrepreneurs while stimulating grassroots economic development across the country.