Kenyan youths may have to find an alternative source of finances after reports emerged that funds meant for business loans were spent on other activities.
A report submitted by the Auditor General Nancy Gathugu in parliament revealed that the Youth Enterprise Development Fund (YEDF) diverted the money and used it for staff travel and salaries.
The AG expressed disappointment saying that such actions derail the government's effort to support the youths in gaining economic freedom and to have an assured source of income.
The reports further revealed that despite the Office of the Auditor General seeking documentation to show official agreement that the funds could be used elsewhere, none was availed.
“No reallocation approvals were availed for audit verification to support the utilisation of conditional grants on recurrent expenditure,” The AG said.
Gathugu also said that YEDF has been lagging behind in its effort to impact the youths who are currently depending only on self-employment as the main source of income.
Following this revelation, the youths who largely depend on government loans due to their manageable interest rates, have been left feeling shortchanged.
The government has several programs meant to help propel jobless youths towards financial freedom, especially during tough economic times.
One of such programs is the Youth Enterprise Development Fund whose sole mandate was to encourage entrepreneurship amongst unemployed youths.
Currently, records indicate that YEDF has supported over 2 million youths with total loans amounting to Ksh13.5 billion.
The latest funds allocated to Kenyan youths was on February 24 when President Uhuru Kenyatta gave Ksh1.3 billion for the youths.
250 young entrepreneurs in The Kenya Youth Employment and Opportunities Project were to get Ksh900 million where each of them was to get Ksh3.6 million to further their business dreams.
