Economic Effects of Youth Enterprise Development Fund on Beneficiaries in Peri-Urban Settings in Kenya

Economic Effects of Youth Enterprise Development Fund on Beneficiaries in Peri-Urban Settings in Kenya

Pauline Tuwei, Benard Mwori Sorre & Kibet A. Ngetich

Moi University, Kenya

DOI: https://dx.doi.org/10.47772/IJRISS.2024.816SCO005

Received: 29 October 2024; Accepted: 05 November 2024; Published: 22 November 2024

ABSTRACT

Depite Youth Enterprise Development Fund (YEDF) being established to enhance youths access to social and financial empowerment, little was known on the extent to which these funds had translated into better living conditions for youths in Kapseret Constituency. This paper is an output of a study that sought to evaluate the economic effects of Youth Enterprise Development Funds on living conditions among the youths in study area. The target population of the study were 428 youths who had benefited from the Youth Enterprise Development Fund (YEDF) between the year 2015 and 2020. A sample size of 200 youths participated in the study. Purposive and proportionate random sampling techniques were employed. Data was collected using an interview schedule, in-depth interviews and observation methods. Both qualitative and quantitative techniques of data analysis were employed. Economically, the YEDF had injected income in form of loans for youths in the study area (100%), 96.5% of the respondents owned asset and that the value of their asset had also increased, YEDF had improved youths’ income (95.5%), 94.5% had started their own businesses and projects, YEDF had helped to create alternative pathways of employment (97%) and 98% had reduced dependency on traditional job market. In conclusion, Youth Enterprise Development Fund had improved the economic aspects of the living conditions of the youth beneficiaries in the study area. However, this was yet to be felt by the majority of the youths that have not been reached out by the YEDF. We recommend the need for more community education and sensitization on YEDF in order to enroll more youths. The national government should increase funding to the YEDF and improve on loan disbursement timeline.

Keywords: Economic Effects, Youth Enterprise Development Fund, Peri-urban, Kenya

INTRODUCTION

In Africa, 70 percent of the population, that is more than 600 million people are young and below the age of 25 years (Awasthi, 2019). The World Bank found that young people under 25 years represent three fifths of sub-Saharan Africa’s unemployed population and 72 percent of the youth population live on less than $2 a day (Manono, 2020). This has necessitated many African countries to establish youth development funds to empower youths, create employment opportunities and boost national food security.

In South Africa, for instance, the National Youth Development Agency (NYDA) was established in 2019, with the mandate of advancing youth development through guidance and support to initiatives across sectors of society and spheres of government: embarking on initiatives that seek to advance the economic development of young people and developing, and coordinating the implementation of the Integrated Youth Development Plan and Strategy for the country (Government of South Africa, 2022). The NYDA activities have propelled young people to reach their personal goals and develop their full capacity. Numerous young people have been assisted since the NYDA’s establishment including: disbursing loans to microfinance enterprises, disbursing Small and Medium Enterprise loans, disbursing Business Consultancy Services Vouchers and engaging youth under the National Youth Service Program.

Youth unemployment is one of the biggest development challenges in the Third World Countries and Kenya is not an exception (United Nations Development Programme, 2020). In Kenya, 75.1% of the population are youths (KNBS, 2019) and over 15 million people live below the poverty line, with over three million classified as unemployed. According to a report by the YEDF in 2014, youths account for about 55% of the unemployed in Kenya, implying that unemployment is predominantly a youth issue (YEDF, 2018), with a steady shift from formal to informal sector employment, popularly known as Jua Kali.

Widespread poverty remains a critical development challenge in Kenya (Muthee, 2021). Young people are particularly affected by unemployment, lack of proper housing (particularly in the urban areas) and health challenges. Poverty has affected educational levels and children from poor backgrounds have been known to be much less likely to attend school than those of rich families. Mburu (2020) notes that poorer educational levels imply poorer chances of gainful employment.

In the absence of opportunities in the formal labour market, many young people are engaged in the informal sector, Jua Kali, which is largely unregulated and subjected to hazardous conditions, low earnings, and long working hours and without any formal contract. In response to this, in the last two decades, Kenya has had several grants and funds to empower targeted population cohorts. The most notable were funds targeting women and youths as the most vulnerable groups. Top on the list are the Women Funds, Women Enterprise Funds, Uwezo Funds and Youth Enterprise Development Funds.

To address the youth challenges, the Youth Enterprise Development Fund (YEDF) was introduced on 8^th December, 2006 and later formed into a State Corporation on 11^th May, 2007. The Fund has engaged in partnership with 32 Financial Intermediaries (FIs) to enable the youth access funds directly either as individuals or as organized entities. Apart from the on-lending component of the fund through financial intermediaries, there is the Constituency Youth Enterprise Scheme (C-YES) which funds enterprises of youth groups in all constituencies (Government of Kenya, 2021). YEDF focuses on enterprise development as a key strategy for increasing economic opportunities for, and participation of Kenyan youth in nation building and seeks to increase access to capital by young entrepreneurs in order to reduce the level of youth unemployment in the country. An estimated Kshs 5.96 billion has been disbursed to 315,076 groups and individual enterprises all over the country. Out of this amount Kshs 614.8 million has been advanced to 13,341 group-projects, while Kshs 66.1 million has been disbursed to 2,645 individual enterprises at the constituency level. A total of 141,552 group and individual enterprises were financed by Kshs 5.3 billion. The fund disbursed is expected to be repaid back to the lending institutions so as to be accessed by other youth enterprises that were unable to access the fund due to limited allocation by treasury.

This study conceptualized the term youth to refer to young people between the ages of 18 and 34 years as defined under the Constitution of Kenya 2010. In Kapseret constituency, majority of the population are youths that are also unemployed and struggling to survive the tough economic times. This paper is an output of a study that sought to examine the socio-economic effects of the Youth Enterprise Development Fund on youths in Kapseret Constituenc, Uasin Gishu County, Kenya.

LITERATURE REVIEW

Available evidence (Simiyu, 2020) shows that the livelihood activities of street youth are looked down upon by mainstream society. This has led to their negative labeling in much of Africa. In Tanzania, the unemployed youth roaming or hawking in the streets are called the manchicha; in Uganda and Kenya they are referred to as bayaye; in Nigeria they are called jan banga, ‘jaguda boys’, or the area Boy; in Algeria they are referred to as hittiste; in South Africa they are called tsotsis, and so on. Abdullar (2019) has termed the urban unemployed out of school youths in Africa the pseudo lumpen proletariat. All theselebeling present negative connotations.Given their stereotyping, the street youth are generally viewed with “awe, sensitivity, contempt and vicious passion” by the general public (Momoh et al, 2018). If caught stealing, they tend to be subjected to ‘instant justice’, thrown into jail, or as Mukui (2017) cynically puts it, “shot to save the trouble of feeding them in prison”.

According to Youth Enterprise Development Status Reports (2021), it recognizes that through these programs youths have managed to start and sustain viable businesses, and attain financial independence and stability. It has been observed that few African countries have an explicit employment policy context within which to situate their youth (Mhone, et al., 2019). It is argued that the structural adjustment and stabilization policy packages currently in place all over Africa have often been considered sufficient as a policy context. However, as Mhone, et al., (2019), observe these adjustment policy packages relegate a passive role of employment creation to the state. Employment generation in this context is seen as a derivative of the overall economic resuscitation that is expected to take place as economies are restructured. According to Mhone, et al., (2019), this expectation is based on the false assumption that once the government puts in place the necessary conditions, the private sector may create jobs for young people.

The youth are said to have developed not only their distinct sub-culture, but also their own social structures that are well guarded by a clear hierarchy (Mhone, et al., 2019). As in the USA (Abdullar, 2019), the youth gangs and their criminal enterprises in Africa are said to display features of a ‘career path’, with an identifiable ladder of promotion, salary augmentation and status attainment where the participants can see a horizon of personal development.

Africa is currently going through multiple social, economic and political crises and the overall situation for young people remains very uncertain and uneven. As Amenya (2021) observed, in such a context, the future of African youth is fraught with danger. In the majority of countries, basic education for all remains a distant hope, exposure to new technologies remains a dream, employment in the formal sector is still a privilege and health care is not available for many young people. Nonetheless, the view is that this dismal situation could still be changed if young people are made a priority group for action aimed at encouraging them to take their destiny in their own hands rather than remain marginalized passive observers.

The persistent economic crises and restructuring processes in Africa have incapacitated the mainstream social institutions that can facilitate the transition of youth into adulthood status or to work. The broader consequences of the collapse of social institutions that support the transition of youth into adulthood and the withdraw of the state from actively supporting youth development in a context of high and rising youth unemployment have led to the growing phenomenon of ‘youth streetism’ and its consequent youth sub-cultures.

According to Sievers & Vandenberg (2018), access to both financial and Business Development Services (BDS) can aid the growth of micro and small enterprises. In South Africa, the National Youth Development Agency (NYDA) was established and it aimed at advancing youth development through guidance and support to initiatives across sectors of society and spheres of government, embarking on initiatives that seek to advance the economic development of young people and developing and coordinating the implementation of the Integrated Youth Development Plan and Strategy for the country. The NYDA activities have propelled young people to reach their personal goals and develop their full capacity (NYDA, 2019).

In Kenya, the YEDF has put into place Enterprise Development Unit (EDU), with the sole purpose of enhancing capacity for youth entrepreneurs to manage funds loaned to them by the Fund and to ensure prudent management that can perpetuate business growth among the enterprises. The unit covers all the youth enterprises in the country that have been financed by the fund and any other youth enterprise seeking for such assistance. The Enterprise Development Officer (EDO) in consultation with the DYO identifies training needs for the youth in the enterprises and prepares a training curriculum, syllabus and the calendar of events. The unit liaises with field officers in respective areas to mobilize the youth for training in the identified areas of the need in collaboration with the Business Development Service (BDS) providers/Enterprise Development Agents (EDAs), (YEDF, 2021).

Entrepreneurship training and provisions of appropriate Business Development Services are vital to the Fund’s achievement of its mandate. Besides ensuring that the youth have adequate skills, it also assists them in identifying and tapping into business opportunities, while embracing modern business techniques. The Fund has started a mandatory pre-financing training programme to enhance sustainability of youth enterprises. To date, the Fund has provided entrepreneurship training to over 200,000 youth. The fund has also partnered with the Ministry of Cooperatives Development to assist youth form Savings and Credit Societies so far, the Fund has facilitated formation of 24 SACCOs. Besides being marketing vehicles for youth enterprises, these SACCOs will also be used as financial intermediaries through whom the Fund can reach members with credit facilities (YEDF Status Report, 2021).

Okpara and Wynn (2021) in a study in Nigeria found that lack of management skills is a major constraint for businesses. The majority of owners surveyed indicated that they had little or no management skills or experience before starting their businesses. They also indicated that this lack of basic business management skills affected and still affects their businesses in terms of growth. The study, in respect to the management problem, recommended that management workshops and seminars be organized in order to provide owners with fundamental skills in management such as accounting, marketing and record keeping that they needed to manage their businesses on daily basis. These essential skills would enhance the overall success of the venture.

Kanyari and Namusonge (2022) in a study in Gatundu South County, Kenya, aimed to determine the various interventions that influence youth entrepreneurs towards YEDF and their role towards attracting the youth toward YEDF. The study concluded that provision of entrepreneurship training to sensitize and inculcate the youth is crucial in identifying emerging business talents. The study also concluded that provision of continuous and relevant Business Development Services to youth entrepreneurs is important to the success of enterprise development initiatives in creating long term employment.

Given that past research results have consistently found SME training to result in better company performance, even under different cultural settings such as the Netherlands, Spain, Hungary, and China (Mullei, 2019), it is expected that implementation of YEDF-related training programs will lead to higher firm performance in Youth SMEs. This statement underpins the importance of training and development in the national economic development process.

The main knowledge gap that is exposed in this literature is the lack of specific studies dealing with economic benefits of Youth Enterprise Development Fund to the beneficiaries. Instead, they are focused more on the way the various economic objectives of the YEDF can be achieved.

METHODOLOGY

This study adopted a descriptive survey design. The target population of the study were 428 youths who had benefited from the Youth Enterprise Development Fund (YEDF) between the years 2015 and 2020. A sample size of 202 youths was targeted, with a return rate of 200. Purposive and proportionate random sampling techniques were employed. Data was collected using an interview schedule, in-depth interviews and observation methods. Both qualitative and quantitative techniques of data analysis were employed.

RESULTS

The study assessed the economic effects of YEDF on the living condituons of the youths in Kapseret Consituency. The economic aspects were measured by indicators such as access to loan facility (income/capital), YEDF impact on job creation, skills development and employability, innovation and creativity, reduction of youth unemployment and the general economic empowerment.

Nature and type of Loans Received from YEDF by the Respondents

A visit to the YEDF offices revealed that there were several loan products advanced to youths under different requirements. The loan products include Vijana Basharia Loan, Stawi loan, LPO/LSO financing, Talanta Loan, Agri-Bizz loans, Saving based loans, Salaried loans, and Vuka loan. These loan facilities were given to youths through two main routes: first, directly to an individual but he/she must be a member to a group that has benefited before from such loans, and secondly, loans advanced to groups. The study found that, majority 196 (98%) of the respondents had received group loans, while only four (2%) had received individual loans. Group loan is disbursed to the group and managed by the group in terms of its repayment. The loan is deposited in the group’s bank account and repayment done through the same account. The group becomes the guarantor to the loan.

For individual loans, the loans are given to individuals, but have specific requirements. The individual must belong to a group that has previously benefited from the YEDF’s loan. The individual should have ability to repay the loan – including but not limited to being a salaried person or have evidence of a business with records to show he/she needs to boost his/her stock, and can repay the loan. An interest will also be charged unlike for group loans, and the first loan amount cannot go beyond Ksh. 500,000.

According to YEDF’s loan-policy, the minimum loan advanced to either a group or an individual is Ksh. 100,000 and the maximum is Ksh. 5,000,000. Analysis by the researcher indicated that majority of the respondents had received loan amounting to Ksh 100,000. The highest loan received was Ksh. 500,000 and the minimum loan received or accessed by members of a group was Ksh. 20,000. The researcher also established that YEDF was indeed a major (98%) and in fact, the main source of capital for the youths that had participated in the study.

Whether individually or through the groups, respondents were asked to explain how their loans were guaranteed. The results reported have been summarized in Figure 1 below.

Figure 1: How the Loans were Guaranteed

Findings in Figure 1 above indicated that majority (165,83%) of the respondents were guaranteed by their groups when taking the YEDF loans. This was actually anticipated because it is a major requirement for YEDF loans. However, beyond and within the groups, the loans end up with individual members. For instance, when a group is given Ksh. 200,000, the amount is split between the members. One may get for instance Ksh. 50,000 and another Ks. 30,000 depending on what their individual desired amount were. The actual repayment will be upon the individual. Therefore, some individuals may work closely with their family members as indicated by 19(15%) to ensure that they honour their obligation. Others may use personal assets as collateral (15,8%) or even family property as collateral (8, 4%) when applying for the YEDF. One lady, a pharmacist, who had taken an individual loan said that;

I have been given the YEDF loans thrice. The first time I got Ksh. 100,000 through my group. The group guaranteed my loan. Subsequently, I was given Ksh. 250,000 that I used to set up this chemist. I had presented my father’s plot title deed as a collateral. The last loan I got was of Ksh. 500,000. I used my chemist business as the collateral. The most critical thing is that you must be faithful in repaying the loan (A female youth aged 33 year).

This lady demonstrated how she was able to access several loan facilities and how each was guaranteed. Her statement also indicates that the loan facilities from the YEDF were and have been her main source of capital. From her statement, we can also see how she transited from a group guaranteed loan to individually acquired and guaranteed loans.

Loan repayment is significant in several way. For the groups and individuals, it increases their credit worthiness. For the YEDF program, it allows its sustainability through a continuous flow of capital revenue to support more youth groups. It is within this understanding that the respondents were asked to indicate their loan repayment status as summarized in Table 2 below.

Table 2: Loan Repayment Status

Evidence from Table 2 above indicate that cumulatively, 90.5% of the youths were repaying and/or had repaid their loans. Only 19(9.5%) had not repaid. These results presents a promising picture of the youths in terms of their obligation to repay loan. When asked to explain why many of the participants were successfully repaying loans as expected, the youths mentioned the training they get from the YEDF officers. These trainings are so critical in instilling financial discipline and values that are to be upheld by members. The findings agree with previous findings by Muli (2015) who investigated factors affecting repayment of YEDF loans borrowed by youth groups for six coastal counties (Lamu, Kwale, Mombasa, Taita Taveta, Kilifi and Tana River) and concluded that education, age and gender of the youth group members affect loan repayment rates.

The researcher also established that the loan repayment period varied from a minimum of 12 months to a maximum of 60 months. These periods of repayment seemed not to be a constrain with regard to repayment of loans. In support to these findings, a study by Osendo (2019) study found that although there was low performance of YEDF in relation to loan repayment, longer grace period with effective credit control measures can enhance loan repayment for the YEDF loans.

From the above evidence and discussions, the implementation of YEDF has injected   revenue in form of loans to youths in the study area. This is why therefore; the researcher was interested in knowing how such revenue had changed the economic situations of the beneficiaries, which forms the gist of the following sub-section of the analysis.

Effect of YEDF on Job creation and Reduction of Youth Unemployment

Statistics by the British council (2022) place youth unemployment at 13.35% in Kenya. This has been explained by the bulge in youth population, rapid growth rate and shrinking formal employment. The government has YEDF among other initiatives as key interventions in addressing the rise in unemployment by creating jobs for youths. The establishment of the YEDF is believed to be one of the initiatives for create environment for youths to be employed in various sectors. The study analyzed the BEFORE and AFTER impact of YEDF in areas of job creation and reduction of youth unemployment. A Five-Point Likert scale with 8 items was prepared in this regard, where 5=Strongly Agree, 4=Agree, 3=Neutral, 2=Disagree and 1=Strongly Disagree. The findings have been summarized in Table 3 below.

Table 3: YEDF, Job Creation and Reduction of Youth Unemployment

Analysis in Table 3 indicates that before the YEDF, a cumulative majority (77%) said that they had no assets. But after benefiting from the YEDF, a cumulative 96.5% of the respondents agreed that they owned asset and that the value of their asset had also increased. This means that through loan facilities from YEDF, many of the beneficiaries realized ownership of property whose value had also appreciated over time. For instance one of the individual loan beneficiaries said,

You can see for yourself the way my shop is well stocked and active. I was the first to establish a shop on this street and it is the most busy retail shop as you can witness. I took the initial loan of Ksh.200,000 then was added the second loan of Ksh. 500,000 after repaying the first loan within one year. Currently, the value of this business is in millions and yet I have not operated for more than four years. He paused! (A male youth aged 27 years).

In terms of income, before the YEDF, a majority (75.5%) of the respondents in Table 3 said their income had not improved. However, after receiving the YEDF loans and utilizing them, one can see a total of 95.5% of the respondents that said their income had improved. This implies that YEDF had positively impacted on their levels of income that manifested in improved income and thus, the potential to enhance sustainable livelihood for the respondents.

For the individuals and groups that were able to start their own businesses, one can see from Table 3 that 76% of the respondents were not able to start their businesses before the YEDF loans were given to them. However, on receiving the YEDF loans, 94.5% said they had started their own businesses and projects. This means that the YEDF had impacted positively on their ability to invest and make revenue.

Findings in Table 3 also indicate that 95% of the youth agreed that the YEDF has provided financial support and resources for young people to start their own business or gain valuable skills. In an interview with YEDF officials, they observed as follows,

Before a group is offered a loan, we must empower all the members through training for one month. We train them on financial skills, business skills, life skills, management skills and any other skills depending on their situations. This is important for proper management and use of the loan facility and also to instil a sense of responsibility for the groups and individuals to repay the loans so that more youths can benefit from the same (A male YEDF official aged 44 years).

This meant that the YEDF had a long term economic value through skills development.

Ninety seven percent (97%) of the respondents said that the YEDF had helped to create alternative pathways to employment, which explained why 98% of the respondents said that the fund had reduced dependency on traditional job market. This meant that out of the financial and skills empowerment, the YEDF had made to beneficiaries self-reliant.

The researcher took more interest in skills development because it provides impetus for employability, and inspire economic growth in the community. The study therefore, sought opinion of the respondents on the impact of the YEDF on skills development and employability. A Five-Point Likert scale with four items was administered to provide answers. The scale was represented by 5=Strongly Agree, 4=Agree, 3=Neutral, 2=Disagree and 1=Strongly Disagree. The summary of the data is as shown in Table 4 below.

Table 4: Impact of YEDF on Skills Development and Employability

Findings in Table 4 above indicate that respondents disagreed on all the four items of skills development and employability before YEDF had been adopted. However, after receiving the training intervention by the YEDF, the scores on the four items regarding skills development and employability indicate high level of agreement by the respondents. A great majority (89.5%) strongly agreed that after YEDF training programs, workshops and internships had positively impacted young people in the study area. The study further found that 79.6% of the respondents had participated in various trainings by the YEDF. The main training areas were entrepreneurship, business management and loan application procedures. These training were majorly conducted by officials from the YEDF, and they lasted for one month.

Majority (96%) of the respondents agreed that the YEDF had improved skills and knowledge for employability. Equally, 94% affirmed that Youth Empowerment Development Fund had contributed to the skill development and employment opportunities for the youth. Most of the youth had start-up businesses and projects established by funds from the YEDF. This is partly why 92% said that they had improved in terms of their income and were at least financially stable.

Results in Table 4 further showed that 96% of the respondents agreed that they had obtained personal savings account either in a bank or by mobile banking specifically Safaricom’s Mpesa. They acquired the bank accounts as a benefit of training by the YEDF officials. Owning and keeping an active bank account meant better record keeping and a higher credit score (worthiness) especially when seeking for more loan from YEDF.

Because some of the groups had really performed well, they attracted other stakeholders who were also willing to train them further and empower the members for even greater benefits. Therefore beyond the YEDF training, the respondents also mentioned other stakeholders that provided training as shown in Table 5 below.

Table 5: Stakeholders that Provided Training Beyond the YEDF

Results in Table 5 indicate that more than half (55.5%) of the respondents had attended training conducted by officials from the Ministry of Youths, Sports and Culture, 35% had been peer trained, while 19% were trained by Non-Governmental Organizations (NGOs). These results generally appreciate the role that skills development can do on employability and self–reliance among vulnerable groups in the society. Previous studies (Atchoarena, 2020) have shown positive correlations between skills development and improved livelihoods.

For further clarity, respondents were asked to specifically mention the areas that the training focused on. These have been summarized in Table 6 below.

Table 6: Training Areas

Out of the 200 respondents, 65.5% mentioned to have been trained in areas of entrepreneurship, 41% were trained on business management, 35% on Loan application, while 33% were trained on group dynamics. A few (20%) and 4.5% indicated they had received training in book keeping and HIV-AIDS, respectively. From these types of training areas, it was evident that the youths benefited more from skills that were relevant for them to use their loan facilities in a better away, skills that equipped them with better understanding of group dynamics and life skills. The training was therefore, significant to sustain the youth’s economic and social positions in the society.

Economic Impact through Diversification, Innovation and Creativity

Diversification, innovation and creativity are key in spurning economic development in a community. The study examined the impact of YEDF on economic diversification, innovation and creativity by measuring 5 items on a Five Point Likert scale. The scale was represented by 5=Strongly Agree, 4=Agree, 3=Neutral, 2=Disagree and 1=strongly agree. The data obtained was summarized and presented in Table 7 below.

Table 7: Impact of YEDF on Economic Diversification, Innovation and Creativity

Results in Table 7 above indicated a general disagreement before and the subsequent affirmation of the impact of YEDF on economic diversification, innovation and creativity after YEDF was introduced, respectively. These findings demonstrate how YEDF had positive impacted on youth in increasing economic diversification, innovation and creativity.

The findings were in tendem with previous studies (Khalid, 2020; Chikwira, et al. 2022), which concluded that youths used loans acquired from YEDF to engage in other economic ventures like selling second hand clothes business, purchase and sale of chicken, table banking, car wash business, car hire, motorbike and money lending business. All these were evidence of innovations and creativity to diversify their incomes beyond the main reasons they had taken loan from YEDF.

Findings in Table 7 also showed that YEDF had positively impacted on development of new technologies, products and services. This was through a score of 88.5% of the respondents who agreed with the statement that after the introduction of YEDF, there were new technologies, products and services that youth engaged in. For instance, car wash machines, grass cutting machines (mowers), money lending businesses, Mpesa mobile money transfer services, and even brokerage businesses become more common and associated with youths that had received loans from YEDF. This is partly why 84.5% of the respondents also agreed that YEDF had positively impacted on supporting innovative and creative projects.

In overall, an overwhelming 91% of the respondents agreed that YEDF had the potential to stimulate economic growth and attract investment in the community, while 88.5% reported that YEDF had created a more diverse and resilient local economy. In one of the key informant interviews conducted with a local leader in the study area, he observed that,

This area[referring to Kampala shopping centre] was not like this before. There are so many shops, innovations, businesses that if I showed you, you will be surprised that they were all started and funded by YEDF. Many of these young people were in drugs, careless lifestyles and others were known criminals. But when the YEDF become attractive to them and with the targeted training, I can bear witness that those who used their money well have become even good leaders, responsible young adults and their living conditions are admirable by many. You can see the best chemist and saloons here are run by youths who got loans from the YEDF. The bodaboda group leaders are former beneficiaries of the YEDF. Some of the best MPESA and diary feed suppliers received their start-up loan from YEDF. The YEDF has therefore, become a game changer (A male youth aged 29 years).

In conclusion, all the indicators on the impact of YEDF on economic aspects of development were answered in affirmation. As a result, the aurthors concluded that the YEDF had a significant positive impact on economic aspects of life of the youths [beneficiaries] in Kapseret Constituency. It has also been evident that the YEDF had positivelyand variously contributed to the local economy in the study area.

Economic Effects of Youth Enterprise Development Fund

From the findings of the study, the implementation of YEDF had made significant injection of revenue in form of loans to youths in the study area, which had positively changed the economic situations of the beneficiaries. An accumulative 96.5% of the respondents agreed that they owned assets and that the value of their asset had also increased because of loans advanced from the YEDF. A total of 95.5% of the respondents said their income had improved. Similarly, on receiving the YEDF’s loans, 94.5% said they had started their own businesses and projects. Ninety seven percent (97%) of the respondents reported that the YEDF had helped to create alternative pathways of employment, which explained why 98% of them said that the fund had reduced dependency on traditional job market.

All the respondents agreed that YEDF had enhanced their development of skills and employability. In this regard, 89.5% strongly agreed that YEDF training programs, workshops and internships had positively impacted young people in the study area, with 79.6% of the respondents having participated in various trainings by the YEDF.

In terms of diversification, innovation and creativity, it was found that YEDF was key in spurning economic development in the study community. A score of 88.5% of the respondents agreed with the statement that after the introduction of YEDF, there were new technologies, products and services that youth engaged in. Separately, another 84.5% of the respondents also agreed that YEDF had positively impacted on supporting innovative projects.

CONCLUSION

It was evident from the findings that availability of loans from YEDF had created  income for the youths in the study area, allowing them to own assets and also grow the value of their assets. The loans had enabled the youths to start their own businesses and projects that created alternative pathways of employment and reduced dependency on traditional job market. The youths also benefited from capacity building in entrepreneurial skills for employability. It is therefore, the conclusion of the study that through the loans advanced from the Youths Enterprise Development Fund (YEDF), the YEDF had positive effects on the economic aspects of lives of the beneficiary youths in the study area. This answered the question that asked what are the economic effects of Youth Enterprise Development Funds on economic conditions among youths in Kapseret Constituency.

RECOMMENDATIONS

1. There is need for the Youth Enterprise Development Fund’s office to do more community education and sensitization so that it can create more awareness on their This will have several advantages including but not limited to,
2. Recruiting more youths into their programs, and;
3. Explain and clarify to the youths in the larger society who fear to take loans from
4. From the findings, evidence has shown that the National Government budgetary allocation to the YEDF has been diminishing in the last three consecutive sIt was the recommendation of this study that the National Government needs to increase funding to the YEDF.
5. A major challenge noted in the study was delay in the disbursement of funds. To address delays in loan disbursement, the administrators of YEDF need to strictly follow their service charter so that the loans are processed within the scheduled time

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