HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 190273,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/190273/?format=api",
"text_counter": 135,
"type": "speech",
"speaker_name": "Prof. Sambili",
"speaker_title": "The Minister for Youth Affairs and Sports",
"speaker": {
"id": 28,
"legal_name": "Hellen Jepkemoi Sambili",
"slug": "hellen-sambili"
},
"content": " Thank you, Madam Temporary Deputy Speaker. I was talking about the Youth Enterprise Development Fund. I said that this is a Fund that was muted in the year 2006 as one of the bold and ratable intervention to address the youth unemployment and Kshs1 billion was set aside for the Youth Enterprise Development Fund. However, there was no organisational or legal framework in place to facilitate the immediate disbursement of the allocated funds. The Fund was gazetted on the 8th December, 2006, to provide for the necessary legal framework to govern its use and operations. The Fund facilitates youth employment through enterprise development and structured labour export. The 10 Member Advisory Board of the Fund was gazetted on 31st January, 2007, and has 60 per cent of its 1742 PARLIAMENTARY DEBATES July 9, 2008 membership from the private sector. Madam Temporary Deputy Speaker, the Youth Enterprise Development Fund was officially launched on 1st February, 2007 by His Excellency the President of the Republic of Kenya. The launch marked the beginning of the fund disbursement process of the funds to the youth enterprises through the financial intermediaries and the Constituency Youth Enterprise Scheme. The Fund was authorised to transform itself into a state Corporation on 8th May, 2007 by His Excellency the President through Legal Notice No.63. The objectives of the Fund are as follows:- One, is to promote loans to existing micro-finance institutions, registered Non Governmental Organisations involved in micro-financing and savings and credit co-operative organisation (SACCOs) for on lending to youth enterprises. Two, to attract and facilitate investment in micro, small and medium enterprises oriented commercial infrastructures such as business or industrial pacts, market or business incubators that will be beneficial to the youth enterprises. Three, to support youth oriented, micro small and medium enterprises to develop linkages with large enterprises. Four, to facilitate marketing of products and services of youth enterprises both in the domestic and the international market. Finally, to facilitate employment of youth in the international labour market. The only lending component of the Fund mainly work through financial intermediaries such as banks, NGOs and micro-finance institutions, from where the youth get access to funds to start or expand viable businesses. The financial intermediaries manage funds allocated to the districts. That is where the youth access funds directly either as individuals, or as organised entities such as groups, co- operative societies or companies. Madam Temporary Deputy Speaker, a second component is the Constituency Youth Enterprise Scheme that is meant for funding enterprises of youth groups in all the constituencies. The Divisional Youth Enterprise Development Fund Committee has been formed to effectively identify and recommend viable youth group enterprises for loans. The funds managed by the Divisional Youth Enterprise Development Committee, with the District Youth Enterprise Development Fund playing an oversight role, are only allocated to the respective constituencies. So far, the Board has approved financial commitments for on-going lending to the youth as follows:- I have a list of all the financial intermediaries - 28 of them - that have been given that money. Hon. Members will see that in the documents that will be in their pigeon holes by 6.00 p.m today. The total commitment that has been given is Kshs715,800,000 million. The total number of intermediaries are 28. It is important to note that, of all the partners that are involved in the disbursement of the Youth Enterprise Development Fund, only three are banks. The rest are micro enterprise institutions, non-governmental organisations, community-based organisations, foundations and co-operatives, which have been chosen due to their ability to reach the young people of this country at the grassroots level. Many of those institutions do not insist on any collateral from the youth, and rely on group or membership security for their loans. The disbursement summary of the Youth Enterprise Development Fund through the financial intermediaries are given in a table. In Nairobi, 1,780 male youth groups and 1,746 female groups - giving a total of 3,526 - have benefited. They have been given a total of Kshs156,788,668. The next one is Central Province where we have a total of 6,161 enterprises. The amount that has so far been disbursed to them is Kshs181,246,686. The list that has been given has North Eastern Province where there are 204 groups. They have received Kshs16,519,800. Hon. Members are requested to note that loan repayment through financial intermediaries by the youth is quite impressive, and the repayment rate stand at 98 per cent. That means that the July 9, 2008 PARLIAMENTARY DEBATES 1743 Fund is sustainable because the youth are repaying the money. The disbursement summary to the youth enterprises through the Constituencies Youth Enterprise is detailed--- I do not think I will be able to read all of them. The funds have been released to the following districts:- Nairobi has 196 groups. They have received Kshs7,895,570. I do not know whether I can read all of them. Hon. Members will have to look at the document. Madam Temporary Deputy Speaker, money is still there for the groups which have not been given any money. The money is not returned to the Treasury. If there are constituencies where some groups have not received the money, they will get it. The total amount of money that has been disbursed is Kshs211,408,165 to a total of 4,999 groups. The returns from the districts whose constituencies have not exhausted the allocation are being processed, while constituencies which have exhausted their allocations have been requested to approve applications for the second phase of disbursement and submit the returns to facilitate commencement of payment process. However, the loan repayment performance of the first phase will be strictly assessed to release funds for the second phase. The Fund uses the Posta Pay Service of the Postal Corporation of Kenya to disburse the constituency cheques to the youth groups. That arrangement has quickened the disbursement process and ensured timely delivery of cheques to the youths. We are proud of our youth groups who have commenced the servicing of their loans. I would like to say that the repayment of loans for initial beneficiaries will be done in early October, 2007, after the three months grace period. The total loan repayment to date stands at Kshs13.6 million. I would like to talk about entrepreneurship training. The Fund has also been spearheading entrepreneurship training to equip the youth with relevant skills to establish and successfully run their businesses. Towards that end, the following measures have been undertaken:- The number of youths who have benefited from the Fund Entrepreneurship Programme stands at 4,360. Secondly, the number of young people who have been trained by financial intermediaries stands at 67,550. Thirdly, the Fund sponsored the National Business Plan Competition last year and over 6,000 youths participated. The 300 young people who succeeded in the competition have now graduated and the overall winners have been awarded monies. Another business plan competition is planned for this year. I would like to talk about the progress of partnerships. For the Fund to be effective, it is important to form partnerships with like-minded organisations. The following partnerships have been established. The Fund has entered into a partnership with a Canadian Non-Governmental Organisation (NGO) which is known as Eneblis Entrepreneurship Network. I will finish this very quickly. The Eneblis Network is to offer credit and training services to the youth. The Canadian Government is supportive of this partnership. The NGO officially launched its operations in Kenya on 23rd October, 2000. An additional Kshs1 billion will be available for young people to borrow to expand or start their businesses. Another progress is that negations are going on between the Fund and World Bank with a view to financing some objectives."
}