From wage earners to capital owners

The youth transformational initiatives under implementation by the Government are designed to meet the needs, aspirations, wants and hopes of our youth and establish a youth economy.

A multiple approach in which transformative youth empowerment is being implemented through the Youth Empowerment Programme under the umbrella of the National Youth Service is creating employment for the young Kenyans through the Youth Enterprise Development Fund.

The progress of these initiatives in the past three years has not only been encouraging, it also informs us that our quest for the establishment of a youth economy nationally can be achieved faster than ever envisaged.

For instance, during that three-year period, about 2,000,000 of our youth have benefited from Affirmative Action funds disbursed by the Government to the tune of over Sh11.7 billion, with individual repayment rates averaging 76 per cent.

This initiative, under the Youth Enterprise Development Fund, engages young Kenyans in economic development and increased financial activity among themselves, reduces poverty and enhances life and entrepreneurial skills, as well as creates formal and self-employment.

Further, about 77,000 youths have been engaged for work in 74 constituencies under the Youth Empowerment Programme through the National Youth Service and earned Sh5.4 billion and created 300 Sacco's with a whopping Sh1.4 billion in savings.

They have constructed, among others, 212 small water dams and water pans as part of their work. Over 23,325 youth are undergoing training to acquire necessary skills while over 37,000 others have been recruited into the National Youth Service.

This has led to structured social transformation of the youth, empowerment of community youth through gainful engagement, created youth economies in those areas, reduced crime, increased infrastructure and access to clean water, and enhanced their employability.

In this regard, I would like to challenge the youth in this country to seize the moment and become involved with these initiatives with the knowledge that they are the biggest demographic in Kenya at ages 15 to 24 years old and have solid support from President Uhuru Kenyatta.

Further, with a predominantly youthful population of around 72 per cent under 35 years, any development programme in Kenya cannot succeed unless it caters for the youth. What this means is that there is no linear path to enterprise development. Research and profiling as well as active engagement with intended target groups are all critical to enterprise promotion policies and programmes.

Over the years, practical experience has informed Government that providing access to credit and financing, though critical, is not sufficient in spurring entrepreneurial development. The missing link has been the provision of access to markets and opportunities for trade.

These funds, established by the Government several years ago, have not only made capital accessible to youth-owned enterprises, but also extended free business training to them.

The disbursements and initiatives across the country address the needs of young Kenyans and the critically important issue of the pervasive problem of lack of skills, particularly the mismatch between the skills acquired in colleges and those required by the labour market. Resolving this disconnect would go a very considerable way towards tackling rising unemployment.

These impressive statistics demonstrate the ruling Jubilee Party's delivery on its 2013 Manifesto pledges and overriding vision for the youth, who comprise the majority of the population and in whom the future of the nation reposes.

Empirical research reveals that when the nation addresses various challenges and expands business opportunities for youth-owned enterprises, it reduces the likelihood of household poverty.

It is therefore gratifying that, as a major pillar in its development strategy, the Government has adopted enterprise development as a policy agenda towards job creation. The creation of productive, decent and sustainable livelihoods for young people and our women has become a key objective for both the public and private sectors.

As the Ministry of Public Service, Youth and Gender, our engagement with the youth nationwide should continue to address a multiplicity of issues, from development and work programmes to motivational workshops and empowerment for endeavour and development. The empowerment and employment programmes equip the youth for the future.

Apart from the Fund and as a further support for programmes to assist disadvantaged groups, the Government's partnership with the private sector, especially banks and other financial institutions to provide loans and Local Purchase Order (LPO) funding, is a noble idea. However, we shall continue to ensure that the banks adhere to the terms of youth empowerment.

The biggest mandate for any government is to make it possible for people to start and do business without hindrance. An enabling environment for business also addresses distributional inefficiencies brought about by market failure.

My ministry's strategy for working with the youth is to transform them from earners of wages to owners of capital.