Effects of youth enterprise Development fund and Youth employment in Kenya

Abstract

The Youth Enterprise Development Fund (YEDF) was instigated to ensure that a specific portion of the Government annual ordinary revenue is devoted to the constituencies for the purpose of development and growth of enterprise among youth at constituency level. Unlike other development funds that filter from the Central Government through larger and more layers of administrative organs and bureaucracies, funds under this program go directly to local levels and thus provide people at the grassroots the opportunity to make expenditure decisions that maximize their welfare consistent with the theoretical predictions of decentralization theory. However, despite the fact that YEDF could be a preferred source of funding among the youths, accessing it has remained a great challenge. The purpose of study is to find out effects of Youth Enterprise Development Fund and Youth Employment by focusing on the loan capacity issued to youths, how interest rate affects the borrowing of loan and to determine how financial intermediaries work on lending of Youth Fund. The study will use secondary data and OLS to run the regressing in getting the relationships between the independent variables and dependent variable.