Youth Entrepreneurship Training and Beneficiaries’ Loan Repayment Behaviour in Tharaka Noth Sub-County, Tharaka County, Kenya

Judith Karimi Mutegi, Urbanus Mwinzi Ndolo & Simon Ndwiga
Tharaka University
Email: Judygitonga2008@gmail.com

Abstract: The study examines the influence of youth entrepreneurship training on the loan repayment behavior of beneficiaries of the Youth Enterprise Development Fund (YEDF) in Tharaka North Sub-County, Tharaka County, Kenya. Descriptive research design was adopted. Youth groups were selected through multistage and randomization. The YEDF officials were purposively identified. Observation and interviews were used in data collection. Structured questionnaire, Focus Group Discuss and Key Informants’ Guides were used during key informant discussions. Group Lending and Social Traits Theories were applied. Statistical Package for Social Sciences, v. 24 was used to analyze quantitative data, while thematic review was ideal for qualitatively assessing emerging themes from descriptive information data sets. The study found that besides being trained, 46% of youth groups slowly declined loan repayments which eventually affected future sustainability of the overall fund stability. The study concludes that Youth groups ought to be tracked to remit repayments consistently each month, instead of just perceiving financial management training as an end to itself. It concludes that while YEDF is a great boost to the youth enterprise growth, strict measures should be applied to ensure all the borrowed funds are timely repaid, for other potential beneficiaries to be awarded, since the fund operates on a revolving stream structure.