| dc.description.abstract | The quantity of youth fund is not the impediment to high potential of its effectiveness
on job creation to the youth. The issue is the information asymmetry that makes the
Financial Intermediaries (FI) apply strategies to the market that signal on pr
ime
loaners like collateral which many youth do not own, hence the youth perceives as
difficult requirements.
The study sort to determine the role of financial intermediaries
in the management of the Youth Enterprise Development Fund (YEDF). This study
has
brought out the role in
enhancing outreach and also minimizing depletion of the
fund by reducing loss through default. The study
was
carried out in Kiambu County
,
Thika Sub
Count
y,
where
stratified random sampling of 59
groups under the (YEDF)
was
selecte
d. Data collection involve
d
both secondary data from the bank and primary
data through questionnaire administered to the group. Data analysis
involved
multiple
regression analysis
.
The study found that
the youth groups had a high
loan portfolio
and
had exi
sted for an average of
60
mo
nths. The youth groups were composed of
both youths and older persons with some lacking youths though they received youth
funds.
Hence a need to correct this by a plan to graduate all the youths above 35 years
of age out of acce
ss to youth fund to bank loans with a moderate interest above the
youth fund interest but below the market for some duration to minimize shock.
The
youth groups also had balanced gender mix. However, some were composed of
entirely either gender.
The bank h
as an enhanced stability of the groups by creating a
strong bond and collective individual responsibility by not only funding individual
businesses but joint group projects like purchase of group land parcels and ensuring
group attendance discipline.
Youth
fund empowered many youths within the groups
sampled. The study established good linearity between
cash cover/savings
,
average
loan size
and
loan portfolio in arrears
,
and
loan
portfolio of group | en_US |
