Mom­basa is black­listed by Youth Fund

CEO says the county paid a re­cip­i­ent di­rectly, in­stead of through their of­fice

The Star (Kenya) - - Counties - MALEMBA MKONGO @TheS­tarKenya

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.

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