The Role of Youth Enterprise Development Fund (YEDF) in Job Creation: A Case of Dagoretti Constituency, Nairobi County, Kenya
Youth unemployment in Kenya is a serious development issue. The government conceived the Youth Enterprise Development Fund (YEDF) in June 2006 as a strategic move towards arresting the high rate of unemployment among the youth in the country. The overall objective of this study therefore was to investigate the role of the YEDF in job creation: A Case of Dagoretti Constituency, Nairobi County. The study population consisted of beneficiary youth groups at Dagoretti Constituency and YEDF management officials at the head office. The study adopted a descriptive survey design. To achieve this, two sets of questionnaires and one interview schedule were used to get information. Prior to data collection, authorization was sought from National Council of Science and Technology (NCST) The target population was 80 respondents and due to the small sample size, the researcher carried out a census. Out of the target population of 80 respondents, 70 responded translating to a response rate of 87.5% Data collected was analyzed using Statistical Program for Social Sciences (SPSS) and presented in the form of frequency tables, pie charts and bar charts. The research findings showed that majority of the respondents (85% felt that YEDF has helped reduce youth unemployment. A significant percentage of respondents (82% strongly agreed that lack of business and management skills is the greatest challenge entrepreneurs are facing and needed entrepreneurship training. The youth groups also suggest that the Fund should have a variety of structures to disburse funds also is should give loans to individuals since not all of them are in youth groups. They felt that YEDF should be exposed them capacity building programmes and life skills. Further it was found that the interest rate and repayment terms offered by YEDF were found to be the most appealing factor to beneficiaries. The youth groups suggested that the fund have more collaborations and strategic partnerships with financial intermediaries at grassroots to facilitate disbursement of funds to youth groups at the constituency. The main study recommendations include; YEDF funds be increased by the government and other financiers. For YEDF to be more effective in empowering the young entrepreneurs in the informal sector, more emphasis should be put in giving more training in entrepreneurship skills to youth before and after accessing the loan and credit should be given primarily for enterprise expansion, rather than start ups. Keywords: Youth enterprise Development Fund, Job Creation in Kenya