Factors Influencing Youth Group Loans Uptake at the Uwezo Fund in Machakos County, Kenya

Abstract

The Government of Kenya has made various attempts to unlock the full potential of the youth. This is through the introduction of various initiatives such as Youth Enterprise Fund, Kazi Kwa Vijana, Women Enterprise Fund, and Uwezo Fund among others. Despite this attempt by the Government the youths have continued to face challenges in accessing the funds that have ended up accumulating in banks and other credit institutions. The objective of this study was to investigate the factors influencing youth group loan uptake at the Uwezo fund in Machakos County. The study was guided by the following specific objectives aimed to establish the extent to which training influences youth group loan uptake at Uwezo fund, examine how the loan amount affects youth group loan uptake and to examine how repayment period affects the youth group loans uptake at Uwezo fund and to determine whether the lending conditions influences the youth group loan uptake at the Uwezo fund in Machakos County. The study was guided by credit market theory. The study used descriptive research design. The study collected both primary and secondary data using a structured questionnaire. The target population was 194 drawn from registered youth groups in Machakos County in seven wards namely: Mua, Mutituni, Machakos Central, Mumbuni North, Muvuti and Kola. Stratified sampling was used and sample size of 122 youths and leaders selected. The study used simple random sampling to pick the respondents in each stratum. Crobanchs alpha was used to measure reliability. The data was analyzed using both descriptive statistics and inferential statistics. SPSS was used to analyze data. The data was presented using statistical analysis by use of frequencies, percentages, mean and standard deviation. The study revealed that groups trained by UWEZO fund are given preference in accessing the funds, that loan amount affects youth group loan uptake and that most business depend on borrowed money. The study concluded that training influence the youth group loan uptake at the Uwezo fund in Machakos County positively, that loan amount influence youth group loan uptake at the Uwezo fund in Machakos County positively and significantly and that lending conditions influence the youth group loan uptake at the Uwezo fund in Machakos County significantly. The study recommended that Uwezo fund should employ more staff and have a department charged with responsibility of training.