The Youth Enterprise Development Fund has blacklisted Mombasa County for failing to adhere to its rules.
Chief Executive Officer Josiah Moriasi, said the move was undertaken after the county paid a loanee directly instead of making the payment through the Fund's office.
He said direct payments tend to make it difficult for other youths from different parts of the nation to benefit from the kitty.
“Even though Mombasa has promised to rectify the mistake, some people who wanted such loans have already lost big,” said Moriasi, as quoted by The Star.
The CEO, however, decried low uptake of the funds in Mombasa, citing the Sharia law that bars Muslims from borrowing loans that attract interests.
He said they will soon ensure they comply with the law to ensure Muslim youth benefit from the Funds.
“We are in the final stages of ensuring that we make the loans available to our Muslim brothers,” he said.