Early introduction to finance literacy solution to Loan Repayment Curve

Kapsabet,

September 14, 2023

KNA by Geoffrey Satia

Late introduction of business and loan repayment knowledge has attributed to poor loans repayment among the youths in Nandi County, a Sub-County Youth Fund has opined.

Ms. Chemtai Sheen believes that the majority of youths in Nandi County who take Youth and Uwezo funds have poor loan repayment history due to inept finance knowledge as they developed into the youth stage.

Chemtai, the Youth Officer in Charge of Emgwen and Nandi Hills Sub-Counties, said that youth aged between 18 and 34 who qualify for individual and youth group loans have always performed poorly in repaying their loans because financial knowledge is introduced to them late.

According to the Officer, there is a need for parents and caregivers to instill a culture of repaying borrowed loans while still young so that it could help them manage their own finances responsibly as they grow into adulthood.

“We have always trained youth who qualify for funding on how they can manage their proposed businesses and how to repay borrowed government subsidized loans but the majority have always failed,” Chemtai regretted.

She said despite other loan repayment challenges among the youths, responsible early finance nurturing should always start from home where parents and caregivers emphasize the knowledge of growing their money and importance of repaying borrowed capital.

The Youth Officer noted that youths in their early 20s who got it right on how to better their businesses and repay their loans responsibly have had interesting success stories.

“Our youth should understand that paying bills, taxes and repaying loans is an indirect way of creating employment, fighting crime and stepping up the war against the consumption of outlawed drugs in our societies,” she said.

She regretted that individual youth and youth groups who defaulted repayment ended up squandering their money on alcohol, hard drugs or even luxurious spending on items that cannot multiply their income.

Chemtai revealed that the government Youth, Uwezo, Small Medium Enterprise Funds and other subsidized government funding targeting vulnerable groups have been set aside but only groups or individuals who fulfill the laid procedures qualify.

She proposed that our societies at large which include families, church, civil society groups and even local organized groups should form part of a pivotal role in shaping the youth on how to handle their finances as they graduate into adulthood.

The officer however called on the youth to visit their offices so that they could be informed on how they could benefit from government subsidized funding which targets vulnerable groups which includes youths and women.

Chemtai spoke exclusively to KNA at her office at Nandi County Headquarters building on Thursday morning.

Courtesy; KNA