EFFECT OF DEVOLVED FUNDS ON GROWTH OF YOUTH ENTERPRISES IN BUNGOMA COUNTY KENYA

Abstract

Despite the initiative by the government to introduce devolved funds in Kenya, the real effect of these devolved funds is yet to be experienced on growth of the youth enterprises. There has been overemphasis by previous studies on the issues that address challenges and administration of devolved funds with less regard on the real influence on development. The purpose of this study was to examine the effect of devolved funds on growth of Youth enterprises and develop a framework to improve the access of funds by youth enterprise in Bungoma County. The study was guided by the following objectives: To determine the effect of Uwezo fund on growth of youth’s enterprise, examine the extent to which the implementation of the youth enterprise fund program meets intended objectives, to establish various enterprise factors including: awareness, competency and Governmental policies on how they affect development fund and growth of youth enterprise in Bungoma County. The study adapted an explanatory survey research design to achieve the research objectives. The study targeted a population of 67117 youths who have enterprises in Bungoma County, where Agency theory and Allocative efficiency theory were adopted. The study employed Survey Monkey (2017) to come up with a sample size of 380 and then used a stratified random sampling technique in the sample selection. Data was collected using questionnaire as the primary tool. The researcher employed face and content validity while pilot study was carried out to check on reliability. The study collected both quantitative and qualitative data where both inferential and Descriptive statistical analysis were employed during the analysis process. The study reveals that more youths have benefited from Uwezo fund as compared to Youth fund. These funds has created employment and empowerment of youths who have managed to access them, however there are also challenges like poor management of funds, lack of awareness, Low competencies among the members, lengthy procedures in securing the funds which the Government need to address to ensure transparence in realization and use of devolved funds. It is also noted in the findings that; devolved funds play important role in economic stimuli hence improving the lives of youths. It wa noted that youths nearer county administrator offices have benefited more as compared to those far from offices. Kanduyi constituency carries more beneficiaries of devolved funds. Therefore the study recommends that more study be carried out to reveal a deep insight into the perception, competence and attitude towards devolved funds more so on the repayments plans, It also recommended that issues about ICT and computer illiteracy should critically looked at since they present a direct hindrance to maximum utilization devolved funds.