Affirmative funds will no longer be disbursed through intermediary banks. Cabinet Secretary, Sicily Kariuki noted that some of the financial intermediaries charged punitive interest rates which limited accessibility by target beneficiaries and hampered repayment.
She spoke during a consultative meeting with CEOs and Members of the Boards of the affirmative funds under her ministry, to come up with measures to address challenges facing the disbursement of the funds, enhance effectiveness and ensure they meet the desired objectives.
It was also observed that the funds have been operating under management boards that are not fully constituted while some were under the stewardship of acting CEO’s, with thin staff establishments, thus hampering smooth operations.
The Cabinet Secretary undertook to ensure that the boards are properly constituted and substantive Chief Executive Officers appointed to strengthen governance. She emphasized the need to carry out an impact evaluation exercise for the funds to generate outcomes and lessons for scaling up. The evaluation exercise will look into the funds impact on improved households, job creation and poverty reduction.
To increase efficiency in delivering services to the target groups, agencies will be expected to share resources and facilities under the administrative support and coordination of the office of the Directorate of Youth Affairs at the county and sub-county levels.
The affirmative funds were established by the Government to, among other things, enhance the capacity of women, young people and persons living with disability to start and manage micro and small enterprises and expand access to finance through grants and affordable credit.