Yatani defends merger of State-backed funds to establish Sh14b kitty
CREDIT: National Treasury has defended the merger of Uwezo Fund, Women Enterprise Fund and Youth Enterprise Fund into a single entity, saying the consolidation will best help the marginalised groups access credit.
Speaking on the sidelines of a meeting of the National Assembly Committee on delegated legislation in Mombasa to deliberate on regulations and legislation reforms affecting funds in Kenya,Yatani said the government is keen to increase funding to the new kitty.
Three parastatals
The decision to collapse the three parastatals into one iyrfit had initially been met with opposition from a section of MPs in August last year, saying it would be counterproductive as it does not solve the unique problems in the funds’ management.
“We are establishing the Biashara Kenya Fund and that’s why we are in the process of merging Youth Enterprise Fund, Women Enterprise Fund and Uwezo Fund so that we can enable efficiency and objectivity in disbursement and removing overhead costs and address issues of regulations,” Yatani said while announcing that the Fund would be increased from Sh2.5 billion to Sh14 billion, adding the government is keen to reduce overheads, make it targeted and ensure efficiency in accessibility and also avoid duplication.
Legislators had also expressed concern over the possibility of job losses at the three funds, saying the proposal did not provide sufficient transitional provisions for employees, assets, and liabilities including remedies for defaulters.
But according to Yatani, the new direction is keen to capture the majority vulnerable groups including pastoralists groups and jobless youths.
He said the process of operationalisation is on its advanced stage. We are also looking at establishing a drought management fund so that we can cushion Kenyans and enable the government to manage the drought situation in the country.
He said six banks are already on board to operationalise the process.
