The Youth Enterprise Development Fund (YEDF) has refuted recent reports claiming it will not receive any budget allocation for the 2024/2025 financial year.
In a statement released on May 15, 2024, the organization clarified that it has been allocated Ksh 100 million for development (loans) and Ksh 125 million for recurrent expenditure, ensuring its continued operation.
The Fund’s statement was in contrast to the reports published in local newspapers, which alleged that YEDF would cease to exist due to a lack of budgetary allocation.
“The Youth Enterprise Development Fund (YEDF) wishes to address recent reports in the Business Daily and the Daily Nation regarding its budget allocation for the financial year 2024/2025,” read the statement.
However, YEDF has set the record straight, emphasizing that it has been allocated funds and will remain operational in the coming fiscal year.
“Contrary to the erroneous reports alleging that YEDF will not be in existence in the coming F/Y 2024/2025 due to zero Budgetary allocation, the Fund has been allocated Ksh 100 million for development (loans) and Ksh 125 million for recurrent expenditure, and not nil budget as indicated by the newspapers,” the statement further reads.
Impact of The Youth Enterprise Development Fund
The corporation noted that in the last three years, it has made a significant impact on youth entrepreneurship in the country.
Similarly, the fund said that it had disbursed loans totaling Ksh 1.4 billion and provided business support services to 380,000 young people, directly contributing to the growth of their enterprises.
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Looking ahead, YEDF has outlined its plans to further strengthen its financial position.
The organization projects to recover Ksh 635 million from outstanding loans and generate an additional Ksh 62.5 million through appropriations in aid (A-in-A).
This will bring the total funds available for loans to Ksh 735 million and Ksh 187.5 million for recurrent budget.
Additionally, YEDF said that it had developed a resource mobilization and partnerships strategy to secure additional resources from external sources.
Implementation of the ERP Platform
To enhance its operational efficiency, accountability, and transparency, YEDF has implemented a robust Enterprise Resource Planning (ERP) platform.
This system aims to improve customer experience, employee performance, data security and accessibility of information for better service delivery.
One of the key features of the ERP is the ability for youth to apply for loans online, which is expected to reduce loan turnaround time and increase annual disbursements.
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Furthermore, the Fund further clarified that the decline in the value of its assets, which was reported as a deficit, was due to a revaluation carried out on the recommendation of auditors during the year ended June 30, 2022.
This revaluation led to the reduction in asset value, which was misinterpreted as a financial deficit by some media outlets.
The organization encouraged factual reporting and assured the youth, partners, and stakeholders that it is sustainable and will strive to exceed customer expectations
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