Mombasa is blacklisted by Youth Fund
CEO says the county paid a recipient directly, instead of through their office
The Mombasa government has been blacklisted from the Youth Enterprise Development Fund, after it failed to adhere to rules and regulations of doing business with beneficiaries.
Chief Executive Officer Josiah Moriasi said Mombasa paid a loanee directly, instead of through their office. He said the fund has lost at least Sh8 million due to non-repayment.
Moriasi said anyone doing business with beneficiaries must pay them through their office.
He said this way the fund will take its cut before depositing the balance to the beneficiaries’ account.
Moriasi said direct payments make it difficult for other youths to benefit from the kitty.
He said four people have been denied LPO loans because of “one individual’s sin”.
“Even though Mombasa has promised to rectify the mistake, some people who wanted such loans have already lost big,” Moriasi said.
Despite having been blacklisted, Mombasa has been named as one of the best paying counties in the other products they offer such as Agrivijana Fund.
Moriasi took over office in early October after the office was marred with corruption allegations, which led to the dismissal of its former CEO Bruce Odhiambo. He said the funds’ uptake is still low at the Coast due to cultural beliefs.
Moriasi said many Muslim youths do not take out loans because Sharia prohibits them from borrowing money that has interest.
He said the board will enhance compliance with Sharia so that more youths can take loans.
“We are in the final stages of ensuring that we make the loans available to our Muslim brothers,” he said.
Loan uptake in Mombasa is currently at Sh33 million compared to Nairobi’s Sh3 billion.
The Fund encourages young people to create jobs and take advantage of their entrepreneurial skills. It provides affordable financial support.