A new youth-focused initiative known as the MK Fund has launched a seed grant programme aimed at supporting young Ugandans with innovative business ideas across key sectors of the economy.
The fund, chaired by Muhoozi Kainerugaba, Uganda’s Chief of Defence Forces, will provide small startup grants of up to Shs1 million (about $270) to individuals seeking to start or expand businesses.
The announcement followed the inaugural meeting of the fund’s Board of Trustees held in Fort Portal.
According to Muhoozi, the fund is designed to support vulnerable groups, particularly urban youth, by giving them seed capital to start income-generating activities.
“The Fund will serve those segments of society that are most vulnerable such as urban youths,” Muhoozi said.
He added that the grants will target sectors such as commercial agriculture, services, local manufacturing and information and communications technology.
“The seed grants will be given to individuals with each person receiving not more than Shs1 million in cash. Beneficiaries will not need to pay back the money. The only pay back will be the success of the recipient,” he said.
The fund will start with an initial capital base of Shs1 billion, with the board expected to mobilise additional resources through fundraising efforts to expand its reach.
Applications for the grants will soon open online through a dedicated website where applicants will find eligibility requirements and application procedures.
The Board of Trustees includes several prominent figures, among them Health Minister Jane Ruth Aceng, Agriculture Minister Frank Tumwebaze, businessman Edwin Karugire, and journalist Andrew Mwenda.
Aceng welcomed the initiative, describing it as a major step toward empowering young people to become economically active.
“Congratulations Gen. Muhoozi Kainerugaba for this excellent vision of empowering the youth with seed capital to enable them start income generating activities,” she said in a statement shared online.
According to the fund’s guidelines, at least 30 percent of the grants will be allocated to women, while efforts will also be made to ensure regional balance among beneficiaries.
Supporters say the initiative could help address youth unemployment by giving young entrepreneurs access to startup capital.
However, some observers have also expressed cautious skepticism, noting the political context ahead of Uganda’s 2026 general elections and questioning whether the initiative may become intertwined with political mobilisation.
Despite the mixed reactions, organisers say the fund’s goal remains to empower young Ugandans to transform innovative ideas into sustainable businesses.
