Mombasa County and KCB Bank have established a Sh60 million fund where fishermen will borrow interest-free loans.
The arrangement is that the fishermen and other people working in the deep seas will work as a group.
They will use the loans to buy two vessels which they will share, as well as any other equipment needed for fishing in the Indian Ocean.
The county and the bank will contribute Sh30 million each.
The deal was signed during the just concluded ASK show.
The loans are to be paid back within two years.
Governor Hassan Joho said the agreement is part of efforts to address joblessness that is driving youth into crime.
“We are determined to empower our people economically as we move towards alleviating social vices including drug abuse and radicalisation,” Mr Joho said.
He added: “By so doing, the people will also contribute to our economy by paying taxes.
“We cannot improve our tax income if the people are idle. We cannot talk of sustainable peace and security when our youth do not have anything to do. We cannot end radicalisation when our youth are jobless, that fight will go to waste.”
The governor said the interest shown by foreign vessels in Kenyan waters shows fish is in demand.
“The two vessels will expand our fishing capacity,” said Mr Joho.
KCB Foundation Director Jane Mwangi noted that over 10,000 youth will benefit at the end of the first phase of the project in 2017.
“The young people of Mombasa need not be desperate any more, we are restoring hope through fishing,” Ms Mwangi said.
She urged the youth to be responsible and utilise the funds well.
“This is a revolving fund with zero interest on loans. You must do business and return the money for others to borrow,” Ms Mwangi added.
More than 20,000 youth in Mombasa are abusing drugs and many others are falling prey to radicalisation and extremism and this has been blamed on unemployment.