Coastal youth have been challenged to seize government financial inclusion funds, such as the National Youth Opportunities Towards Advancement (NYOTA) Fund, to start income-generating businesses and become self-reliant.
Speaking during an Entrepreneurship Summit for Coast Youth Organised by BrighterMonday Kenya and the Mastercard Foundation in Mombasa, Rhoda Kisunza, Assistant Director in the State Department of Youth, said the affirmative funds are designed to support young people with capital to start or expand their businesses.
However, she expressed concern over the low uptake and repayment of the funds among coastal youth. “Those who have taken them haven’t been able to repay the loans. Even though these loans are zero-rated, they’re not profitable,” she noted.
The Assistant Director called for concerted efforts among stakeholders to agitate for a shift of mindset among the youth and increase uptake of the funds to match other regions, where applications remain high.
“We’re trying now to change that mindset through our training. We are trying to show them that even in the Central Region, they started like that, and they have now grown. Most of the time, you find that we are closing a Financial Year and we still have money in our accounts,” stated Kisunza.
“When you go to the counties in the mountain region, you find that the money has run out, and even the political leaders have to add more money. I’m urging our youth in Mombasa and the Coast Region to apply for the funds. These programmes are there, and they have been made youth-friendly for our youth to grow,” she added.
The Department collaborates with partners such as BrighterMonday Kenya and Equity Bank to train the youth on entrepreneurship. The training is customised according to the Fund, like in the Youth and Uwezo funds, the youth undergo intense training before they are issued with cheques.
Trade fairs and exhibitions are also conducted for the youth to showcase their products and for customers to purchase. The youth are also trained on Access to Government Procurement Opportunities (AGPO).
Managing Director (MD) of BrighterMonday, Sarah Ndegwa, urged the youth to take a leap of faith and start a small business, as they have the motivation and the vision to become self-reliant.
“We are asking them to start small and then grow. We hope that the whole interaction, engagement and the partnerships that we have and the different partners that have also come here today will help them start their businesses or even grow the small businesses that they have already started,” she said.
She commended Persons with Disabilities, who are eager to learn and build livelihoods rather than rely on others.
“The youth are motivated to be self-reliant. The handouts are not really the solution. The solution is to find them something sustainable that they can use every day, in and out, to build themselves and to continue their lives.”
Equity Bank Coast Regional Manager Joseph Ndung’u said they expect the youth to help drive economic growth, spur social transformation and contribute to a technology-led economy.
The Bank will train the youth on financial literacy, budgeting, record-keeping and savings and also assist them in accessing finances to fund their business.
“The biggest problem youth encounter in business is access to capital,” he said, adding that many are locked-out due to weak securities, poor financial management, weak governance, shifts in tax policy and vulnerability to global supply chain disruptions.
By Sadik Hassan
