Fund ropes in on youth defaulting on loan repayments
27 November 2013, 14:56
Nairobi - The Hazina Youth Fund said it is putting in place measures to identify and bar youth that have defaulted on payments.
This follows revelation of statistics from the fund indicating that 30 percent of the youth who had borrowed loans were unable to repay them.
Officials raised concern that the trend was affecting the funding of other youth projects in the country.
“For those people who are accessing money in groups, we have what we are calling a core guarantee, also called the "Bangladesh" way of banking".
" This is a core guarantee mechanism to just ensure that those young people borrowing have their fellow young people guaranteeing them,” said an official from the Hazina Youth Fund.
The high unemployment rate in the country has seen many youths taking loans to finance their lifestyles.
Government has had mixed success empowering the youth through capacity building and providing them with capital to start them off in their different projects.
Among other projects aimed at empowering youth include the Uwezo Fund, which was launched a few months ago.
– CAJ News