Determinants of repayment of youth enterprise development fund loans in Ol kalou constituency, Kenya

Abstract

The Youth Enterprise Development Fund (YEDF) was established in year 2006 with the sole purpose of reducing unemployment among the youth . . In Ol Kalou Constituency, it is estimated that 27% of youths are unemployed and only 9% are in wage employment the remainder w ork in the informal sector. This study was a descriptive research whose target population was 75 group leaders and three DDOs, and three DYOs in the Constituency. A sample of 63 respondents was drawn using simple random sampling. Data was collected through self administered questionnaires and analyzed by descriptive analysis using SPSS 22 . The study found that the disbursed loan amount is sufficient to improve the youth welfare, the grace period given is sufficient, loan repayment duration has been sufficie nt . T hey also agreed that the loan amount lend leads to slow repayment of loan and that the avenues of payment are efficient. The amount of loans disbursed is adequate. A significant proportion of the groups had not received training prior to being given l oan. The study concludes that government’s introduction of an entrepreneurship development fund with a view of encouraging the youth to venture into self - employment, is very generous move . Training should be given to groups before any government funding . A dequate resources in terms of additional personnel and funds should be provided to enable smooth monitoring of all funded youth groups.