Borrowers’ Characteristics and Repayment of Individual Loans Provided by Youth Enterprise Development Fund in Embu County, Kenya
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Date
2024-02
Authors
Mwaniki, Pius Njagi
Makori, Daniel
Irungu, Anthony Mugetha
Journal Title
Journal ISSN
Volume Title
Publisher
AJOEI
Abstract
Purpose of the Study: To investigate the effect of borrower characteristics on the repayment
of individual loans provided by the Youth Enterprise Development Fund (YEDF) in Embu
County, Kenya.
Statement of the Problem: Individual loan repayment has been slow with an increased
number of loan defaults among individuals borrowing from YEDF in Embu County. Borrower
characteristics play a key role in loan repayment among individuals. Studies have shown mixed
results regarding the effect of borrower characteristics, with local studies showing research
gaps.
Methodology: The study adopted an explanatory research survey design and positivism
research philosophy. The target population was 705 individual loan youth beneficiaries from
YEDF Embu County, with a sample of 255 individuals selected through stratified random
sampling. The study collected primary data through structured questionnaires, and descriptive
and inferential statistics were used for analysis. Logit regression analysis was used to
investigate the relationship between the explanatory variables and the predicted variable.
Findings: Through descriptive analysis, the study found that there were more male
beneficiaries than female beneficiaries. The majority of individual loan beneficiaries were
within the age bracket of 30-34 years. The study also found that most of the respondents were
married. On academic qualification, the majority of loan beneficiaries had agreed to have an
academic qualification. The study further indicated that almost all of the respondents had no
business management training. Additionally, borrower characteristics had a positive effect on
loan repayment.
Conclusion: Borrower characteristics have no significant effect on the repayment of individual
loans provided by YEDF in Embu County, Kenya.
Recommendation: YEDF should endeavor to sensitize and train all Kenyan citizens who have
attained the age of youth, both male and female, married and single, educated and not educated,
on its loan product and the importance of repaying the amount borrowed on time.
Description
Article
Keywords
Borrowers’ Characteristics, Repayment, Individual Loans, Youth Enterprise, Development Fund
Citation
Mwaniki, P. N., Makori , D., & Irungu , A. M. (2024). BORROWERS’ CHARACTERISTICS AND REPAYMENT OF INDIVIDUAL LOANS PROVIDED BY YOUTH ENTERPRISE DEVELOPMENT FUND IN EMBU COUNTY, KENYA. African Journal of Emerging Issues, 6(2), 46 - 58. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/544