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Islam preventing youth from accessing youth fund

25 February 2015, 12:39 Ken Wekesa

Tana River - Youth in Tana River Sub-County are shying away from the youth development fund due to their religious beliefs.

The fund official in the sub-County, Mohammed Komara said that millions of shillings have not been disbursed because of the 5% interest charged which is against Islam.

“Many youths have not applied for the fund because of the 5% charges on the funds given because of their religion,” said Komara.

Speaking to the press at his office in Hola town Komara said that the few youths who had benefited from the project had defaulted paying the 5% interest.

He said that no single youth in the region had gone to acquire the direct loans of between KES 100 000 and KES 150 000 because their groups had failed to repay their first loans.

Read Also: Education won't secure you a job, Moi tells youth

“The fund has not been able to disburse the initial target of KES 1.5 to the youth because they failed to refund the debts incurred from the 5% interest,” said Kamora.

Kamora revealed that since the inception of the fund, only KES 1.4 million had been disbursed to 97 youth groups in the sub-County but noted that they were very slow in repaying.

“The repayment rate of the KES 3 million disbursed was 21% which is very low, and that is very discouraging as we have now to personally trace the groups to acquire the loan payments,” said Kamora.

He however urged the youth to come out and apply for more loans so they can engage in business activities that will help them realize profit.

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