Concern over low uptake of Youth Fund in Marsabit

The national government has raised concern over low uptake of the Youth Enterprise and Development Fund (YEDF) loans despite the soaring unemployment cases in Marsabit County.

The YEDF National CEO Benson Muthendi said the government has stepped up training, sensitisation and awareness campaigns to help increase loans uptake by young entrepreneurs.

“It is unfortunate that so far, the youth fund has given out only Sh 12.4 million through its diverse loan products scheme, with only 1,696 beneficiaries in Marsabit County,” Mr Muthendi said.

He spoke to journalists in Marsabit Town during the launch of a three-day training of 200 young entrepreneurs targeted for the loans uptake.

Mr Muthendi complained that the Fund loans endorsement still remains way below the target among young people in the region, blaming it entirely on lack of awareness and fear of borrowing.

In existence for more than 13 years

He revealed that despite the fund being in existence for more than 13 years now, the number of beneficiaries in the county still remains insignificant.

The loan uptake has never exceeded Sh20 million, which ought to be an annual disbursement in Marsabit County alone.

The gap has consequently necessitated awareness and training to entice the small-scale business people and those with business ideas to apply for the loan.

Mr Muthendi revealed that up to Sh13 billion has been disbursed to 1.9 million youth across the 47 counties.

Widespread training was anticipated to be rolled in all the remote areas of the county to reach out as part of the initiative by the state to increase disbursements.

The government has been making efforts to register and pre-qualify enterprises run by youth, women and people living with disability so that they can easily access government tenders and contracts, which see billions of shillings pumped into them each year.

Speed up issuance of loans

Marsabit county YEDF Director Arthur Mwangi reiterated their readiness to speed up issuance of loans to various women and youth groups across the county.

“We have reviewed all the application procedures and collateral conditions to charm more young entrepreneurs to benefit from this fund,” said Mr Mwangi.

Concerns have been raised by a number of youth groups that loan processing took discouragingly long due to bureaucratic processes in the government, but Mwangi said that the applicants will be able to get loans within two months.