BANKS REJECT CHEQUES FOR YOUTH FUND

Government cheque allocations to some youth groups in Kitui District under the Youth Enterprise Fund have been rejected by banks.

The groups had benefited from the Sh1 billion fund after more than 15 months of strict vetting. They were shocked when banks declined to honour their cheques.

Are defaced

Copies of the cheques, obtained by the Nation, indicate that they had been drawn from the Community Corporate branch of Equity Bank, but their serial numbers, showing the cheque number, bank code and the youth fund account number, are defaced.

Kitui district commissioner Abdi Hassan confirmed receiving complaints over the alleged cheques from the affected groups, but appealed for calm, saying the matter was being rectified.

Mr Hassan said investigations were underway and that the bounced cheques will be re-drawn in favour of the affected youth groups.

They were issued by the district youth officer last week at Mutito market at a public ceremony.

Was counterfeit

Kyukuni Youth Group, among those affected in Mutito constituency, deposited their cheque for Sh38,000 at the Kenya Commercial Bank, Kitui branch, where it was discovered the cheque was counterfeit.

The group’s chairman, Mr Nzuki Musyoka, yesterday protested, saying members were demoralised by the development.

Contacted, district youth officer Joseph Mutisya declined to comment.

The Sh1 billion youth fund was established by the Government during the 2005/06 financial year and factored in the Budget.

The fund distributed in soft loans to groups is meant to help youths start small scale income generating projects.




SOURCE: DAILY NATION