The Board of the Youth Enterprise Development Fund says that it will continue with its work even as the government plans to consolidate various financial institutions.
Chairman Ronald Osumba on Friday said the fund has a projection to disburse Sh1 billion this financial year compared to Sh352 million in the last financial year.
Osumba noted that since the appointment of the new board in 2016, the Fund has recorded an impressive increase in monthly loans uptake.
The chairman said that this has risen from Sh20 million in 2016, to Shs 100 million currently.
He also dismissed claims that the ongoing merger will disfranchise those who are currently benefiting from the fund.
The government has announced that it will merge the Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.
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Osumba said that this was no cause for alarm, as
reported in some media, as it is something that has been planned since Jubilee took over in 2013.
“This has since then created anxiety and a sense of despondency among the youth, our suppliers and strategic partners,” he said.
He added; "We wish to confirm that this is a government initiative which was first proposed in the Jubilee Party manifesto released prior to the year 2013 general elections. It is in line with the parastatal reforms that were recommended by the President’s taskforce on parastatal reforms in 2013," Osumba said
Osumba said that the move is aimed at increasing efficiency, resolving overlaps and better utilise resources to achieve economies of scale.
"It is not prompted by an unfortunate incident that happened at the Youth Fund four years ago as alleged," he said.
The Chairman said the government has put mechanisms in place to ensure a seamless flow into the new outfit in order to avoid disruption of services.
"The task force working on the merger is still developing the regulatory framework for the merger which will include public participation. Those currently servicing loans advanced by the Fund are advised to continue doing so," Osumba said.
He said so far the board has re-engineered products and introduced new ones to serve the interests, cultural and geographic diversity of the Kenyan youth.
"Notably, we have introduced loans for startups, agribusiness and for youth in the creative industry. We have also reduced group membership to five for youth interested in group loans. We have further enhanced business expansion loans to Shs 5 million," he said.