The Kenyan Treasury disbursed a total of Sh324.5 million to youth-owned Micro, Small, and Medium Enterprises (MSMEs) under a government fund aimed at supporting youth entrepreneurship. This amount, however, fell significantly short of the target of Sh655 million set for the year, highlighting ongoing challenges in meeting the full disbursement goals.
This shortfall is part of a broader trend of fluctuating loan allocations to youth MSMEs over the years. In the 2021/22 financial year, a total of Sh370 million was allocated, showing a relatively higher level of support. However, the following year, in 2022/23, the amount disbursed dropped dramatically to just Sh143.8 million, marking a sharp decline in funding to youth enterprises.
The data provided by the Treasury reflects these inconsistencies in the financial support allocated to the youth sector, which has raised concerns about the government’s ability to meet its targets for empowering young entrepreneurs. While the government continues to push for youth inclusion in the economy through initiatives like the MSMEs loan fund, the reality has proven more challenging, with many youth enterprises still facing barriers to accessing financial resources.
The reasons behind these fluctuating disbursements remain complex. They include issues such as the low uptake of loans due to stringent qualification requirements, a lack of financial literacy among some youth entrepreneurs, and operational inefficiencies in loan distribution channels. Furthermore, the broader economic climate and challenges in the MSME sector have also contributed to the underperformance of this program.
Despite these setbacks, the government’s commitment to supporting youth-led businesses remains unwavering. Going forward, a more targeted approach and a review of the loan disbursement processes could help ensure that the intended impact of the program is fully realized, providing a crucial boost to youth entrepreneurship and employment.
