Mombasa youths shun loans
19 February 2014, 14:41
Mombasa - Lack of money generating programs in Mombasa County has forced youth groups to shy away from borrowing loans from the youth fund.
This is according to the Director of the youth funds in the Likoni sub-county of Mombasa, Rukia Chimera.
Chimera said that the research conducted by the board revealed that youths are afraid of getting the funds without planning for it beforehand for the sake of repayment.
The major issue contributing to the lack of interest in the funds has been failure by the county government of Mombasa to create money generating plans that will encourage the youths to invest with the funds provided.
According to the director, the problem has gravely affected the repayment process with groups that have managed to access the funds taking too long to refund.
The Mombasa county government, through its Executive office of finance warned that youths might not be able to repay the funds if they get them without them providing a plan of how they will use it.
This has triggered a reaction from the board of directors of the youth funding program and according to Madam Chimera, they have laid out a program of giving advice on how to make sure the funding does not result to losses to the youths.
Speaking to the media, the Umoja Nguvu youth group chairman, Ali Mwashuma said that the funds that are offered are not worthwhile.
“You will realize that even though the funds are offered, the cash is limited to an extend that the youths will strain too much in their attempt to balance the equation between profitability and ability to refund the money. This has greatly affected many youths,” said Mwashuma.
Madam Rukia advised youths not to be afraid of accessing the funds as the program is not aimed at punishing them but to see to it that every Kenyan youth has a source of income.
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