Effect Of Youth Enterprise Development Fund On The Performance Of Youth Enterprises In Marsabit County, Kenya

ABSTRACT

Despite data availability on YEDF loan disbursements and repayment, empirical literature on the performances of youth-run enterprises from the loan across various counties in the country remains scanty, yet the basis of sustained YEDF disbursements ought to be youth empowerment. Against this backdrop, the main study objective was to examine the effect of YEDF on the performance of youth enterprises in Marsabit County, Kenya. More specifically, the study sought to determine the effect of lending conditions on the performance of youth enterprises; establish how disbursement timeline impacts the performance of youth enterprises as well as examine how program accountability affects the performance of youth enterprises; in Marsabit County. Theories underpinning the present study include the Precipitating Events Theory by Shapero, Public Interest Theory of Regulation by Arthur Cecil Pigou and Systems Theory by biologist Ludwig Bertalanffy. The present study design is the descriptive survey with simple random sampling. A sample of 84 youth (YEDF beneficiaries) and 4 YEDF officers were sampled. Both interview schedules and questionnaires were used to collected data. Descriptive analysis was then conducted. Findings indicate that lending conditions are a significant challenge towards youth’s uptake of the YEDF loans. Among these prohibitive conditions include cumbersome loan processing and application procedures as well as conditions attached to subsequent loans. It was also found that accountability issues also present a notable challenge towards uptake of YEDF among youth in the study area. Most notably, most youth shy away from taking up YEDF due to YEDF officers asking for bribes before support, unawareness of most of the youth of the YEDF procedures as well as unclear rates of interest charged on the loans. The study also found that timeliness of disbursements of YEDF loans are also a considerable hindrance towards the uptake of YEDF by the youth. More specifically, it is complained that YEDF has long procedures in accessing loans and that the duration between the formal application and receipt of funds is inconveniencing. The study recommends that the government ought to lift stringent requirements in the application of the loan so that a wider pool of youth can apply. In addition, in order to empower the youth, it is important to offer entrepreneurial trainings, which would go a long way in ensuring there is discipline in the usage of the funds and therefore less chances of misuse and more chances of servicing the same. The study is further of the view that youth entrepreneurs are provided with relevant and continuous business development knowledge for the success of enterprise development initiatives as well as for the creation of long term employment.