The Kisumu County government has set aside a Sh100 million revolving fund to empower women, youth and Persons With Disabilities.
The fund aims at tackling the issue of gender balance and inclusion of the marginalised groups in various activities run by the county government.
County Executive for Youth Jennifer Kere said the money will be loaned to groups at low interest to enable them start income generating activities.
Kere said the fund will enable the groups participate in national and county governments tenders.
She spoke during a minority group's forum in Nyalenda on Monday organised by Africa Woman and Child Feature services.
She noted that few youth were applying for the 30 per cent tenders awarded by law due to lack of financial capacity.
Ms Kere said lack of funds by youth may hinder the county government from meeting the requirements as most youth lack capital to compete for the tenders.
According to the county youth department, there are more than 70 registered youth groups with 80 per cent able to get tenders.
However, the executive noted that most of them failed to compete for the tenders effectively.
Ms Kere disclosed that less than 70 per cent of the tenders were taken up by youth groups in 2014.
This forced the county government to allow other companies to take up the remaining tenders, she added.
Kere decried that most of the youth groups given tenders by the county abandon them for lack of capital.
On the management of the funds, she said a team of technocrats were working on the best way to manage the money.
Kere said the county is considering partnership with financial institutions to manage the money on their behalf.
“We think this will address conception that any fund from the government is not returnable,” she added.
But civil societies and locals have opposed the use of financial institutions which they said will make the fund inaccessible.
Kenya Female Advisory Organisation Executive Director, Esther Achieng said the county should look for the best alternative to manage the money but not banks.
Achieng said the financial institutions have a tendency of putting barriers to keep away the youth to create room for them to invest the money.
“Financial institutions will put their business interest first thereby locking out the youth,” Kisumu City Residents’ Association Chairman Audi Ogada said.
He said the county government should manage the funds through its well laid structures.
Ogada said financial institutions will demand for title deeds and other securities which the youth will not meet.