An Analysis of Factors Influencing Accessibility of Credit Finances from the Youth Enterprise Development Fund in Githunguri Constituency, Kiambu County, Kenya.
Ngureh, John Mwangi
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According to the youth status report 2007-2012, a youth is one fall ing between the ages of 18-35 years. The youth are faced with many problems such as unemployment and underemployment leaving them in the ranks of swelling poor. Further, the youth are unable to raise start-up capital to start a business since they do not have source of funds or property such as building or land which can serve as collateral for debt capital. Besides, once a loan is acquired, a high interest rate has to be paid, which is about 25% compounded and most of the youth are poor and cannot afford to pay. The government has in the recent past established various initiatives aimed at absorbing the extra labor force over and above what the formal sector can be able to accommodate. One of the government initiative aimed at addressing lack of start-up capital among the youth in the country is Youth Enterprise Development Fund (YEDF). However, despite the fact that YEDF could be a preferred source of funding among the youths, accessing it has remained a great challenge. It is from such a background that the study sought to identify factors influencing accessibility of credit finances from the YEDF. The study identified, individual, group and system factors influencing accessibility of credit finances from YEDF in Githunguri Constituency, Kiambu County. Descriptive research design was adopted. Purposive random sampling was used to sample respondents from the study area. Questionnaires were the key instrument used to obtain primary data supported by comprehensive review of secondary information. Data analysis constituted both qualitative and quantitative analysis, which was carried out using the Statistical Package for Social Sciences (SPSS). The analysis provided quantitative information in form of descriptive statistics such as percentages and means. Data was presented using tables, bar graphs and pie-charts. The study was useful as it formulated policy recommendations aimed at ensuring increased access to credit finances from YEDF by young people. The study established that majority of the members in the youth groups are men and are between the ages of 19 - 35 years. -The study also established that majority of the respondents were business people and had secondary education and above. The study also revealed that the groups had more than 10 members. Friends and relatives were a good source of information about YEDF, the study revealed. Additionally.the study established that there was a lot of bureaucracy in accessing YEDF.