Factors influencing uptake of the youth enterprise development fund in Samburu east constituency, Kenya

Abstract

Driven by the need to address the high levels of youth unemployment in Kenya, the government established the Youth Enterprise Development Fund. The objective of the fund is to provide the youth with access to affordable credit either as individuals or in groups. Since its inception in 2006, it has disbursed billions of shillings countrywide. However, there are huge disparities in uptake of the availed credit across the 47 counties. Among the counties with the lowest uptake is Samburu County. Indeed, according to the 2013 status report of the youth fund, the county was ranked last. The rank is indicative of various challenges which have influenced access in this county. This study has investigated factors which have influenced uptake of the Youth Enterprise Development Fund loans, in Samburu East Constituency, Samburu County and focused on three independent variable being, regional factors, accessibility of information on the YEDF among the youth, and the social-cultural factors. To do so, it has focused on 73 youth groups which have accessed the loans at Constituency level as well as other stakeholders involved in registration of the groups and disbursement of the fund. Out of this, a sample size of 23 was selected for interviewing. Eventually, 15 respondents have been interviewed. Methodologically, the study which was exploratory used descriptive survey design. During data collection, the study used both primary and secondary data. Primary data was collected using an interview schedule so as to enable the researcher explore as many factors as possible. This data has been augmented by secondary data mainly generated through desk study review during analysis. Further, the study adopted a conceptual framework and a theoretical framework so as to enable integration of various factors identified. The framework integrates social-cultural, information access and regional factors which in varying degrees have influenced access to youth fund. Data generated was subjected to both qualitative and quantitative analysis. The mixed analysis enabled the researcher to capture and analyze different types of data depending on the appropriate method of analysis. The study main findings are that lack of economic opportunities, insecurity, poor infrastructure, inadequate information, and social-cultural factors such warrior culture (Moranism), patriarchy have influenced the uptake of Youth Enterprise Development Fund in Samburu East Constituency. The study recommends that there needs to be concerted efforts to improve the infrastructure, electricity and mobile network coverage within Samburu East Constituency to enhance a favorable business environment. It also recommends that in concert with other agencies too, the youth fund should assist in strengthening product value chains through infrastructure development, linking of small business to suppliers and the market and in light of the different realities in the various counties, that the fund may consider addressing this factor and bringing out the gaps where greater attention and support may be required to overcome these barriers as their resolution may not come overnight but is a process during which a lot of time which youth would have benefited if some extra support is offered may be lost. The study has also identified some areas for further research.