Agency raises alarm as youth default Kenya Kwanza loans

Youth Enterprise Development Fund board chairperson Fatma Barayan has regretted that a majority of youth have been unable to refund the government empowerment money loaned to them.

Others, she said, have failed to apply for available funds due to lack of sensitization and those who apply never refund the money despite the demand.

“The challenge we have is that some politicians incite the youth not to return the money, we have gone to the extent that we ask them to repay because that will affect the fund, we have asked for a challenge of recovery,” said Barayan.

She said failing to repay the money has hurt the funding programmes. This year the government has set aside Sh655 million to support youth programs.

“In this financial year, we were supposed to disburse Sh655 million for instance in Jomvu sub-county we have so far disbursed Sh6.4 million as at December, but we anticipate more because the uptake is not bad and therefore we ask them to take up the loans, “she said.

Speaking in Jomvu during a sensitization forum on the fund, Barayan asked politicians to lead sensitisations by educating the youth about the importance of getting the loans to empower themselves.

During the meeting a number of youth groups from Jomvu Kuu, Mikindani and Mritini benefitted from the funds. The fund chair now wants youth to come in large numbers to access the government fund.

Entrepreneurship skills

“We have sensitised the youth on entrepreneurship skills, where they have an opportunity to ask questions about the fund, we have seen it important to introduce such forums in high schools so that when they complete school they have the ability to look for funds,” said Baraya.

The Fund seeks to create employment opportunities for young people through entrepreneurship, encouraging them to be job creators and not job seekers. Lack of good mentorship she said has affected a majority of youth in applying to access the funds. “We have planned mentorship programs in Garissa, Tana River and other parts of the country so that we can ensure youth get informed, we also encourage youth to innovate and be creative in the ventures they embark on,” she added.

Steven Musyoki, leader of Majestic Group of Youth who have benefitted said the fund was significant to them because after getting funds they can now sustain themselves. “Through youth fund, we have been able to start projects of rearing fish and producing Khaki materials, we have earned a living for us and family, we ask the youth to take advantage of this fund, “said Musyoki.

Self reliant

Meanwhile, The youth have been urged to secure loans from the Youth Enterprise Development Fund (YEDF) and invest to boost their lives and create jobs to ease unemployment.

Kisii County YEDF officer, Aatos Mogoi told youths who graduate from universities and colleges to form groups in order to access the funds and invest to be self-reliant as they wait for jobs in formal and informal sectors. Some youths, noted the Officer, who secured loans and invested in viable projects have benefitted, creating jobs for themselves and for others.