Influence of Loan Lending and Economic Development of Youth in Kesses Constituency, Kenya

Abstract

The issue of youth economic development is of concern both to the developed and developing countries. The purpose of this study was to determine the influence of loan lending strategy and economic development of youth in Kesses Constituency. The objectives of this proposal include the effect of loan lending, market support, market linkages, training and collateral on economic development of youth. A lender-based theory of collateral, the theory of youth empowerment, and the theory of asset-building community was adopted by the study. The study adopted the explanatory research design. Target population was 200 youth with a sample size of 133 determined by Slovin formula. Reliability was tested by Cronbach’s alpha coefficient whereas the validity was measured through the content validity. Questionnaires was used as data collection instruments and data collected was analyzed using descriptive and inferential statistics. Loans for the economic development of young companies (r=0.542, p=0.022) were significantly influenced. The economic development of a youth business has been improved with increased loan loans. Lending influenced economic development considerably. The loan conditions had a major impact on the level of credit absorption of young people. Access to credit plays a major role in the growth of young businesses, so this fund should be given more young people, in order to create independent employment. The government of Kenya can benefit from this study by planning for additional resources for youth, by identifying gaps in the strategy on youth empowerment by donors and by taking remedial measures.