Loan Repayment & Government Funding Among Youth Groups Showcasing Kwale County, Kenya

Abstract

The County Government of Kwale established the Youth Fund with the aim of empowering its young population. Nevertheless, achieving this goal has been hindered by the occurrence of a significant default rate, leading corporations to incur losses by reducing the value of these debts from their revolving funds. The initial aim of the research that culminated into this article was to evaluate the impact of loan amount on the repayment of government funds provided to youth organizations in Kwale County Fund Kenya, objectives were to assess the impact of existing legislation on the repayment of government funds by youth organizations in the Kwale County Government; to examine how the borrowing process affects the repayment of government funding by youth organizations in the Kwale County Youth Fund; and to determine the influence of group leadership on the repayment of government funding by youth organizations in the Kwale County Youth Fund. The study was grounded in empowerment theory, group funding theory, and joint liability theory. The research study employed a descriptive survey design and focused on 860 young individuals from 60 distinct groups in several sub-counties under Kwale's county administration. Based on its findings,, the researcher recommended that the amount borrowed by youth groups should be equal to the granted Loan; and grace period ought to be extended; and loan interest should be determined by a borrower's or a group's capacity. The loan laws should be accommodating and borrowing procedure should be clear, motivating and efficient. The group leaders should be conversant with the repercussions of loan default in order to enhance loan repayment and performance of youth fund. It also suggests that future studies should be done to establish challenges facing accessibility of youth funds in the County.