Impact of youth enterprise development fund on rural development A case study of Kikuyu constituency

Abstract

This study sought to examine the influence of Youth Enterprise Development Fund on Rural development in Kikuyu Constituency, Kiambu County, Kenya. The objectives of the study addressed the issues of loan disbursement, capacity building, timeliness of disbursements, and project identification as influencers of youth empowerment in Kikuyu Constituency, Kiambu County. Research methodology adopted by this study was a survey method and the study targeted the youth groups within Kikuyu Constituency who borrowed from the Youth Enterprise Development Fund From 2013- 2015. The total target population comprised 300 members and sample size consisted of 150 respondents. Both open-ended and close-ended questionnaires were used, as well as an interview guide for the key informants. In this research, descriptive statistics were used. The questionnaires were edited first for accuracy, and completeness. The study used frequency distribution and percentages, and computer software-Statistical Package for Social Scientists (SPSS) as a tool of analyzing data, and to establish relationships between variables. The analyzed data was tabulated for presentation. The findings on loan disbursement indicated that the respondents were aware of the requirements needed before loan applications were made. In addition, the respondents expressed appreciation of the interest-free loans, but decried the loan amounts as inadequate. The respondents also pointed out that although they received advance training before they started new businesses, they felt that more training was needed in order to enhance their skills in their businesses. They also felt that the duration it took to release the funds after application was too long, and it hampered their ability to plan for business capital. In terms of project identification, the respondents felt the need for greater involvement of the government in market linkage for their products and services. Further, the study found that the found that the youth have benefited economically from the various YEDF funded projects, there has been a reduction in unemployment as well as growth in development of Kikuyu Constituency The study recommends that there be a reduction in the time it takes to process the loans, so that the youth can take advantage of the special Government tenders that are reserved for them. The loan amounts can be increased at the discretion of the Government so that the youth have sufficient funds to set up and expand their businesses. Flexibility in giving subsequent loans should also be considered especially where the youth are carrying out a special project.