By Our Reporter
Saccos are among financial institutions that have defaulted on repayment of Youth Enterprise Development Funds (YEDF).
National Assembly Special Funds Accounts committee led by South Imenti MP Kathuri Murungi has directed the fund’s CEO Josiah Moriasi to recover all the interests, penalties and full principal amounts.
Appearing before the committee Moriasi said Necco Fosa Sacco, Nyamira Tea Farmers’ Sacco, Nomad Welfare Development Group and Adoctimo owe YEDF Sh313.9 million as at June 2015.
“We have been unable to recover Sh200 million. We have sent several demand letters and made a lot of follow-ups so that these institutions clear the outstanding penalties and interests,” said Moriasi.
He said the institutions received the money for lending to youths but defaulted on repayment.
He said the fund board has resolved to engage youth directly instead of using financial institutions.
“Some of these institutions were getting money from us but disbursed it to people who were above the age of 35,” said the CEO.
He however said the funds are secured by bank guarantees, which include land and other properties, but the fund was unable to recall them due to prolonged court cases.