Ksh.1 Billion Meant For Youth Enterprise Spent On Staff Allowances

Nancy Gathungu, the Auditor-General has said one billion shillings from the Youth Enterprise Development Fund meant to give loans to the youth has been utilized to pay staff salaries, perks, and travel.

According to a report tabled in Parliament, Ms. Gathungu said the move casts doubt on the ability of the fund to provide loans to young people intending to start their own business a

In her report for the financial year ended June 2019, the Auditor General says the utilization of the 1 billion shillings for recurrent expenditures will affect the sustainability of the fund.

According to her, this implies that the fund manager has over time utilized Sh1,093, 839,342 of the revolving fund to recurrent operations expenditure thereby affecting the sustainability of the fund.

Further, no reallocation approvals were availed for audit verification to support the utilization of conditional grants on recurrent expenditure. Under the current circumstances, the sustainability of the revolving is at risk and therefore and doubtful.

Her report that the funds’ woes are further compounded by the fact that it has in the last four years continues to incur deficits in its financial performance.

She says in the report that the trend of the fund continuing to incur deficits as has occurred over the last four years may erode the capital invested in the revolving fund and impair the ability of the fund to sustain its core duty and services as intended in its formations.

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“This material uncertainty which casts significant doubt on the continued ability of the fund to discharge its mandate in the foreseeable future has not been disclosed in the financial statements,” reads the audit report.

The Auditor-General has also questioned the payment of Sh739,726 to an officer at the fund for 45 days leave commutation. The officer has not been mentioned in the audit report.

April 24th, President Uhuru Kenyatta said the government, through the Kenya Youth Employment and Opportunities Project (KYEOP), will inject a total of Ksh1.3 billion into the Youth Economy.

President Kenyatta, who spoke during the award ceremony for the ‘MbeleNaBiz’ winners at the Moi International Sports Center, said Ksh.900 million of that amount will go to 250 young entrepreneurs as grants.