Youth Financial Empowerment Programmes and Socioeconomic Development of Rural Areas in Nyeri County, Kenya
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Date
2016-10
Authors
Muruthi, James Waweru
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
There have been numerous policies and programmes on growth, development and
improvement of people and society welfare. This is through empowering the youth by
providing them with the necessary resources and a platform for creating awareness on available
opportunities. Most of these policies and programmes are directed toward a specific sector,
industry or an area with an aim of creating a positive impact in the short or long run to that
sector and the overall economy. This has led to the government and other stakeholders focusing
in the rural areas by using the youths as an instrument of change but the question was if there
is any change despite pumping a lot of resource in these areas. The purpose of this study was
to determine the effects of government and non-governmental organization intervention
through youth financial empowerment programmes on socio-economic development of rural
areas of Nyeri County by providing credits, bringing new technology, markets provision and
finally through imparting them with financial knowledge. The study adopted a descriptive
survey research design. The population of the study was 2 persons from 63 registered youth
groups from Nyeri County, totaling to 126 respondents to represent the whole population of
youth. Purposive sampling was employed to all the targeted respondent making the study
sample size 126 who were beneficiaries of the youth financial empowerment programmes. Data
collection was through primary methods such as interviews and questionnaire and secondary
methods such as journals and government publications. Reliability and validity of the
questionnaire was tested through piloting while ethical considerations were observed by
treating responses with confidentiality. Multiple Regression Analysis and descriptive statistics
(such as mean and standard deviation) were used in the analysis of data. Data presentation was
done by using tables for ease of understanding and interpretation. From the study findings
youth financial empowerment programmes had varying impact on development. Adoption of
current technology was significant in influencing socio-economic development of rural areas.
Credit provision and market provision were also found to have high effect while financial
knowledge was found to have a moderate effect on socio-economic development of rural areas.
In conclusion, to improve productivity and living standard of rural areas of Nyeri County youth
financial empowerment programmes through adoption of new technology, credit provision,
market provision and financial knowledge are of significant effect. The study recommended
that good financial management knowledge such as budgeting, recording, and reporting are of
paramount importance thus more resources such as educative materials should be produced to
enlighten the youth. A policy framework that would involve more youth through public
participation in coming up with empowerment policies should be put in place and involve a
wider net of stakeholders apart from the government, such as private investors and NGO.
Lastly, diversified sources of funding or credit should be involved so as to pump more financial
capital to youth and rural areas which would have great effect on development
Description
A Research Project Submitted in Partial Fulfilment of the Requirement for the Award of a Master of Business Administration Degree (Finance), School of Business, Kenyatta University.