Do not disband the Youth Fund, make it work for young people

In 2011 the Nigerian government did an interesting experiment on funding businesses run by the youth.

It invited young entrepreneurs to submit their business plans. Some 24,000 youth applied and 6,000 were selected and given training on entrepreneurship. Then their plans were whittled down and a final shortlist of 1,200 proceeded to the final stage.

The government then gave out $36 million to these 1,200 entrepreneurs. The funding was higher than usual in such matters as entrepreneurs got as much as $50,000 in grants. A study by the World Bank three years later revealed stunning results.

The entrepreneurs who received State funds were running hundreds of new companies, many already making profits and collectively employing more than 7,000 people.

The multiplier effect of their businesses was similarly high: the 7,000 employed likely employed others in other ventures. The State also was benefiting from the taxes they paid. The businesses are going concerns, further enriching the complex economic ecosystem.

These businesses allowed youth to build up assets and pull themselves up by their bootstraps.

The message from this World Bank study has insights we as a country with a demographic profile comparable to Nigeria can appreciate. Successful entrepreneurs with government training and financial support are more likely to succeed than entrepreneurs who go it alone.

The government has an important role in guiding business and unleashing the entrepreneurial spirit that creates opportunities in the market. Large grants to entrepreneurs who receive guidance and mentorship work.

The Youth Enterprise Development Fund may have fallen foul of the machinations of the corrupt and its money misappropriated. The fund has been exposed to astonishing wastage and fraud. This represents a deep betrayal of the aspirations of Kenyans and those found guilty should face the full force of the law. However, the mistakes of its management should not detract us from the fund’s potential as an avenue that can spur entrepreneurship.

ACUTE UNEMPLOYMENT

Half our population is below the age of 18. The burden of unemployment is most acute on the young. The youth have been continually excluded from taking a productive role in the economy. Kenya holds the dubious distinction of being East Africa’s largest economy while having the largest mass of unemployed youth. Youth are more likely to be unemployed, underemployed, or among the ranks of the working poor.

We also know that the longer youth remain away from work the less likely they are to be employable. Our current unemployment crisis cannot wait lest we end up with a wasted generation. Too many graduates leave university to find that the society that trained them at great expense is not interested in their labour.

The Youth Fund can help ameliorate the burden of idleness and the waste of potential stalking young people.

The instincts that drove the government to set up the Youth Fund are correct. The execution of this mandate is what is in question. If properly managed, with proper training and idea development, the youth can be given a chance to orchestrate their own success. All they need is a big brother to show them the way and give them a leg up.

There is great opportunity in getting the poorest honest work and to give the masses a chance to lift themselves out of poverty.

Most youth are unaware of the existence of these State funds or how to access the opportunities on offer. The Kenya Youth Survey Report 2015 found that 58 per cent of respondents had no knowledge of government-initiated development projects.

Now is not the time to be backing away from the Youth Fund. Those calling for its disbandment risk throwing out the baby with the bath water. We should be expanding the mandate of the Youth Fund, extending its reach, deepening its pockets, and streamlining its application procedures. The Youth Fund remains an integral part of the solution to our unemployment problem.

Mr Kimutai is the chairman of the Kenya Youth Alliance. [email protected].