National Youth Enterprise Development Authority Bill, 2012

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THE NATIONAL YOUTH ENTERPRISE DEVELOPMENT AUTHORITY BILL, 2012 ARRANGEMENT OF CLAUSES

Section PART I—PRELIMINARY 1—Short title 2—Interpretation 3—Object and purpose of this Act 4—Guiding principles PART II—ESTABLISHMENT OF THE NATIONAL YOUTH ENTERPRISE DEVELOPMENT AUTHORITY 5—Establishment of the Authority 6—Functions of the Authority 7—Headquarters 8—Composition of the Board 9—Powers of the Board 10—Appointment and qualifications of chairperson and members 11—Term of office of members of the Board 12—Removal from office 13—Meetings of the Board 14—Appointment of Chief Executive Officer 15—Removal of the Chief Executive Officer 16—Vacation of office 17—Filling of vacancy 18—Committees of the Board 19—Delegation by the Board 20—Employees of the Authority 21—Common seal of the Authority 22—Signing on behalf of the Board 23—Protection of members of the Authority and staff from liability PART III—THE YOUTH ENTERPRISE DEVELOPMENT FUND AND AGENCIES OF THE AUTHORITY 24—Funds of the Authority 25—Establishment of the Youth Enterprise Development Fund 26—Administration of the Fund 27—Conditions for grant of loan 28— Establishment of agencies

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PART IV—FINANCIAL PROVISIONS 29—Annual estimates 30—Accounts and Audit 31—Annual report and publication 32—Financial year of the Authority PART V—MISCELLANEOUS PROVISIONS 33—Regulations 34—Transition provision

FIRST SCHEDULE—PROCEDURE FOR THE CONDUCT OF BUSINESS AFFAIRS OF THE AUTHORITY SECOND SCHEDULE—TRANSITIONAL PROVISIONS

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A Bill for AN ACT of Parliament to provide for the establishment of the National Youth Enterprise Development Authority, and for matters incidental to and connected therewith

ENACTED by the Parliament of Kenya as follows—

Short title. Interpretation.

1. This Act may be cited as the National Youth Enterprise Development Authority Act, 2012. 2. (1) In this Act, unless the context otherwise requires— “Authority” means the National Youth Enterprise Development Authority established under section 5; “Board” means the Board of the Authority constituted under section 8; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to youth; “financial year” means the financial year of the Authority as provided for under section 31; “Fund” means the Youth Enterprise Development Fund established under section 25; “member of the Board” means a person appointed under section 8;

Cap. 446.

“youth” means any citizen who has attained the age of eighteen but has not attained the age of thirty five years. (2) Despite subsection (1), until after the first elections under the Constitution, references in this Act to the expression “Cabinet Secretary” , Principal Secretary” and “State Department” shall be construed to mean “Minister”, Permanent Secretary” and “Ministry”, respectively.

Object and purpose of this Act.

3. The objects and purpose of this Act are to provide for— (a) the establishment, functions, powers and responsibilities of the National Youth Enterprise Development Authority; and (b) measures for ensuring that the youth access employment pursuant to Article 55 (c) of the Constitution.

Guiding principles.

4. In the performance of the functions and exercise of powers under this Act, the Authority shall be guided by the values and principles set out in Articles 10 and 232 of the Constitution.

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PART II—ESTABLISHMENT OF THE NATIONAL YOUTH ENTERPRISE DEVELOPMENT AUTHORITY
Establishment of the Authority.

5. (1) There is established an Authority to be known as the National Youth Enterprise Development Authority which shall be a body corporate with perpetual succession and a common seal. (2) The Authority shall be capable in its corporate name of— (a) suing and being sued; (b) taking, purchasing or otherwise acquiring, holding, charging and or disposing of movable and immovable property; (c) entering into contract; (d) borrowing and lending money; and (e) doing or performing all such other things or acts necessary for the proper performance of its functions under this Act, and which may lawfully be done or performed by a body corporate.

Functions of the Authority.

6. (1) The core mandate of the Authority shall be to provide loans to the youth. (2) Without prejudice to the generality of the provisions of subsection (1), the Authority shall— (a) provide market access services for youth products and services and linkages of micro, small and medium youth enterprises with large enterprises; (b) provide youth oriented commercial infrastructure; (c) provide enterprise development services; (d) facilitate employment of youth in the local and international labour market; and (e) perform any other lawful function for purposes of promoting youth enterprise.

Headquarters.

7. (1) The headquarters of the Authority shall be in the capital city but the Authority may establish branches at any place in Kenya. (2) The Authority shall ensure access to its services in all parts of the Republic to the extent that is practicable to do so.

Composition of the Board.

8. (1) The management of the Authority shall, subject to the State Corporations Act, vest in a Board which shall consist of—

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(a) (b) (c) (d) (e) (f) (g)

a non-executive chairperson appointed by the President; the Principal Secretary in the Ministry for the time being responsible for youth; the Principal Secretary in the Ministry for the time being responsible for finance; the Attorney-General; one person nominated by the National Youth Council and appointed by the Cabinet Secretary; four persons appointed by the Cabinet Secretary; a Chief executive officer of the Board.

(2) A member of the Board who is a public officer may, in writing, appoint another public officer to attend meetings of the Board in the member’s absence and the alternate member appointed shall, when attending a meeting, be deemed for all purposes to be a member of the Board. (3) An alternate member appointed under subsection (2) shall not delegate or appoint an alternate. (4) The appointment of the chairperson under subsection (1) (a) and members under subsection (1) (e) and (f) shall be by notice in the Gazette.
Powers of the Board.

9. (1) The Board shall have all the powers necessary for the proper performance of its functions under this Act. (2) Without prejudice to the generality of the provisions of subsection (1), the Board shall have power to (a) (b) enter into contracts; manage, control and administer the assets of the Authority in such manner and for such purposes as best promotes the purpose for which the Authority is established; receive and consider all loan applications from eligible persons; approve or reject such applications in accordance with the provisions of this Act; recover matured loans; subject to the provisions of this Act, exercise discretion in the application of the Fund; subject to the approval of the Cabinet Secretary for the time being responsible for matters relating to finance, invest any of the Authority funds not immediately required for the purposes of this Act, as it may

(c) (d) (e) (f) (g)

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determine; (h) open a bank account for the funds of the Authority into which all moneys received by the Authority shall be paid in the first instance and out of which all payments made by the Authority shall be made; register youth enterprises for purposes of lending on such terms and conditions as the Board may determine; and exercise such other lawful powers as may be conferred by this Act or other law.

(i) (j)

(3) The Board may— (a) incorporate a subsidiary to undertake commercial functions of the Authority; or (b) if it considers it necessary, partner with any person for purposes of achieving its objectives under this Act, including partnering with the credit reference bureaus in enforcing repayment of the loans. (4) The Board may establish and make contributions to a pension, superannuation, medical fund or any other scheme as it may deem fit for the benefit of employees.

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Appointment and qualifications of chairperson and members.

10. (1) The appointment and qualification of the chairperson and members of the Authority under section 8 (1) (a), (f) and (g) shall be in accordance with the provisions of this Act. (2) A person shall be qualified for appointment as a chairperson under section 8 (1) (a) if such person— (a) holds a minimum of a bachelors degree from a university recognized in Kenya; (b) has a distinguished career in a senior management position in either the private or public sector; (c) holds at least five years' post-qualification professional experience; and (d) satisfies the requirements of Chapter six of the Constitution. (3) A person shall be qualified for appointment as a member of the Authority under section 8 (1) (f) and (g) if such person— (a) holds a minimum of a bachelor’s degree from a university recognized in Kenya; (b) has a distinguished career in their respective field; (c) has at least five years' post-qualification professional experience in matters relating financial management, venture capital fund management or youth development; and (d) satisfies the requirements of Chapter Six of the Constitution. (4) A person shall not be qualified for appointment as the chairperson or a member of the Authority if the person— (a) is a member of Parliament or county assembly; (b) is a member of a governing body of a political party; (c) is an undischarged bankrupt; (d) has been removed from office for contravening the Constitution or any other law; or (e) has, in the conduct of his affairs, not met any statutory obligations.

Term of office for members of the Board.

11. (1) The chairperson and every member of the Board appointed by the Cabinet Secretary shall hold office for a term of four years and shall be eligible for reappointment for one further term.

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(2) The term of office of the chairperson and members of the Board as first constituted and at every reappointment or change in membership shall commence on the date of publication in the Gazette. (3) The chairperson or a member of the Board may resign from office by written notification addressed to the Cabinet Secretary.
Removal from office.

12. (1) A member of the Board may be removed from office only for— (a) violation of the Constitution or any other law; (b) gross misconduct, whether in the performance of the member's functions or otherwise; (c) physical or mental incapacity to perform the functions of office; or (d) incompetence or neglect of duty. (2) The Cabinet Secretary may, upon the recommendation of the Board terminate the appointment of a member of the Board on any of the grounds specified under subsection (1).

Vacation of office.

13. A person shall cease to be a member of the Board if such person— (a) resigns in writing, to the Cabinet Secretary; (b) is convicted of a criminal offence and sentenced to a term of imprisonment of not less than six months; (c) is declared bankrupt; (d) is unable to perform the functions of his or her office by reason of mental or physical infirmity; or (e) dies.

Filling of vacancy.

14. Where a vacancy occurs in the membership of the Board under section 12 or 13, the Cabinet Secretary shall, if the vacancy relates to any of the positions specified under section 8 (a), (f) or (g), appoint a new member in accordance with the provisions of this Act.

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Meetings of the Board.

15. (1) The business and affairs of the Board shall be conducted in accordance with the First Schedule. (2) Without prejudice to subsection (1), the Board may regulate its own procedure. (3) The Board may invite any person to attend any of its meetings and to participate in its deliberations, but such person shall not have a vote in any decision of the Board.

Appointment of Chief Executive Officer.

16. (1) There shall be a Chief Executive Officer of the Authority who shall be competitively recruited and appointed on such terms and condition as the Board may determine. (2) A person shall qualify for appointment under subsection (1) if such person has at least— (a) A minimum of bachelors degree from a university recognized in Kenya; (b) demonstrable experience in financial management; (c) at least seven years experience in a senior management position; and (d) meets the requirements of Chapter six of the Constitution. (3) The Chief Executive Officer shall— (a) be responsible to the Board for the day-to-day management of the affairs of the Authority; (b) be the accounting officer; (c) head of the secretariat; (d) custodian of all records of the Board; (e) responsible for— (i) executing decisions of the Board; (ii) assignment of duties and supervision of all employees of the Board; (iii) facilitating, coordinating and ensuring execution of the Board’s mandate; (iv) ensuring staff compliance with public ethics and national

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values; and (v) the performance of such other duties as may be assigned by the law and the Board.
Removal of chief executive officer.

17. (1) The Chief Executive Officer may be removed from office by the Board in accordance with the terms and conditions of service for— (a) inability to perform the functions of the office of chief executive officer arising out of physical or mental incapacity; (b) gross misconduct; (c) incompetence or neglect of duty; (d) violation of the Constitution; or (e) any other ground that would justify removal from office under the terms and conditions of service. (2) Before the Chief Executive Officer is removed under subsection (1), the officer shall be given— (a) sufficient notice of the allegations made against him or her; and (b) an opportunity to present his or her defence against the allegations.

Committees of the Board.

18. (1) The Board may establish such committees as it may consider necessary for the performance of its functions and the exercise of its powers under this Act. (2) The Board may co-opt into the membership of a committee established under subsection (1), other persons whose knowledge and skills are found necessary for the functions of the Board.

Delegation by the Board.

19. The Board may, in writing generally or in any particular case, delegate to a member, an employee, a committee or agent, the exercise on any of its powers or the performance of any of the functions under this Act. 20. (1) The Board may engage such employees as it may consider sufficient for the performance of its functions under this Act. (2) Terms and conditions of service for the employees shall be determined by the Board, on the advice of the Salaries and Remuneration Commission pursuant to Article 230 (4) (b) of the Constitution.

Employees of the Authority.

Common Seal of the Authority.

21. (1) The common seal of the Authority shall be kept in the custody of the chief executive officer or such other person as the Board may direct, and shall not be

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used except upon the order of the Board. (2) The common seal shall, when affixed to a document and authenticated, be judicially and officially noticed and unless the contrary is proved any order or authorization by the Authority under this section shall be presumed to have been duly given. (3) The affixing of the common seal of the Board shall be authenticated by the signatures of the Chairperson or the Chief Executive Officer: (4) In the absence of the Chairperson or the Chief Executive Officer, the Board shall nominate a member of the Board to authenticate the common seal of the Authority on behalf of either the Chairperson or the Chief Executive Officer.
Signing on behalf of the Board.

22. (1) All letters and instruments written or made by or on behalf of the Board, other than those required by law to be under seal, and all decisions of the Board, shall be signed under the hand of the Chairperson or the Chief Executive Officer. (2) In the absence of the Chairperson or the Chief Executive Officer, a member of the Board, authorized as such, may sign any letter or instrument.

Protection of members of the Authority and staff from liability.

23. Liability shall not attach to the Authority or to any of its member, officer, agent or staff for loss or damage incurred by any person as a result of any act or omission done or made in good faith and without negligence in the performance or exercise or the intended performance or exercise of any duty or power imposed by or conferred under this Act. PART III—THE YOUTH ENTERPRISE DEVELOPMENT FUND AND AGENCIES OF THE AUTHORITY

Funds of the Authority.

24. The funds and assets of the Authority shall comprise— (a) moneys allocated by Parliament for the purposes of the Authority not being less than two percent of all the government ordinary revenue collected every year, for the first five years after the commencement of this Act; (b) any grants, gifts, donations, loans or other endowments given to the Authority; (c) such funds as may vest in or accrue to the Authority in the course of the exercise of its powers or the performance of it functions under this Act; and (d) moneys from any other lawful source accruing to the Authority.

Establishment of the Youth Enterprise Development Fund.

25. (1) The funds of the Authority shall be held in a Fund to be known as the Youth Enterprise Development Fund which shall be administered, on behalf of the Board, by the Chief Executive Officer.

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(2) There shall be paid from the Fund— (a) (b) (c) (d) loans to the youth; the salaries, allowances and other remuneration of the employees of the Board; such other operational expenses incurred by the performance of its functions; and Authority in the

monies as are necessary for the Board to carry out its mandate within the scope of this Act.

(3) The Authority may, subject to any other law relating to the management of public finances, apply the revenue generated from the discharge of its core mandate specified under section 6 (1) in supporting the functions specified under section 6 (2). (4) The provision of any law or regulation relating management of public funds shall apply to the management of the Fund.
Administration of the Fund.

26. (1) The Board shall lend to the youth either directly or through other mechanisms as the Board may determine. (2) A youth wishing to be considered for the grant of a loan shall make an application to the Board in the prescribed form. (3) A youth who— (a) in filling a loan application form, knowingly makes any false statement, whether orally or in writing relating to any matter affecting a request for a loan; (b) being required under paragraph (a) to answer any questions, furnish any information or particulars or produce any document or paper, neglects to do so without reasonable cause; or (c) is granted a loan based on false information, commits an offence and in the case of paragraphs (a) and (b) shall, upon conviction, be liable to a fine of not exceeding one hundred thousand shillings or to imprisonment for a term of not exceeding eighteen months and in the case of paragraph (c) to a fine of not exceeding two hundred thousand shillings or to imprisonment for a term of not exceeding three years.

Conditions for grant of loan.

27. (1) The Board shall grant loan to an applicant on such terms and conditions as the Board may deem fit. (2) Notwithstanding subsection (1), the Board may set the criteria and conditions governing the granting of loans including the rate of interest to be charged, taking into

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consideration the need to ensure sustainability of the Fund and affordability of the loan. (3) Any unrepaid loan, including interest thereon, shall be recoverable by the Board as a civil debt.
Establishment of agencies.

28. (1) There is established— (a) an Enterprise Development Centre which will offer business development services to youth entrepreneurs at such fees as the Board may prescribe; a Youth Employment Scheme Secretariat which will facilitate the participation of the youth in the local and international labour market and their partnership with other agencies and organizations.

(b)

(2) The Board shall determine the staffing levels of the agencies established under this section. (3) An agency established under this section may perform any other function assigned to it by the Board. PART IV—FINANCIAL PROVISIONS
Annual Estimates.

29.

(1) At least three months before the commencement of each financial year, the Board shall cause to be prepared estimates of the revenue and expenditure of the Authority for that year. (2) The financial estimates referred to under sub-paragraph (1) shall— (a) differentiate between recurrent and development expenditure; and (b) itemize every activity that the Authority intends to undertake in the coming financial year under a separate vote head.

(3) The chief executive officer shall lay the proposed estimates before the Board for review and approval. (4) The Board may make alterations to the estimates and shall thereafter submit them to the Cabinet Secretary for transmission to the National Assembly for approval. (5) Upon approval of the estimates by the National Assembly, all monies from time to time required for purposes of the Act shall be paid into the Fund. (6) If after approval of the budget the amount appropriated for any purpose under the Appropriation Act is insufficient or a need has arisen for expenditure for a purpose for which no amount has been appropriated by that Act as contemplated under Article 223 (1) (a) of the Constitution, the Secretary shall prepare supplementary estimates of revenue and expenditure in the manner specified under paragraph (2). (7) Supplementary estimates referred under paragraph (6) shall not exceed the ten

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percent of the sum appropriated by Parliament for that financial year unless special circumstances exist as contemplated under Article 223(5). (8) If there are any special circumstances to warrant exceeding the limit stipulated under paragraph (7), the supplementary estimates shall contain a description of the circumstances and a justification for requesting for more funds. (9) Supplementary estimates shall be presented to the Cabinet Secretary for submission to Parliament for approval.
Accounts and Audit.

30. (1) The Authority shall cause to be kept such books of accounts and other books in relation thereto of all its undertakings, funds, activities and property as the Cabinet Secretary may from time to time approve and shall, within a period of three months after the end of the financial year, cause to be prepared, signed and forwarded to the Auditor-General— (a) a balance sheet showing in detail the assets and liabilities of the Board; and (b) such other statements of accounts as the Cabinet Secretary may approve. (2) The accounts of the Authority shall be examined, audited and reported upon annually by the Auditor-General in accordance with the Public Audit Act. (3) The Authority shall submit to the Auditor-General all books and accounts of the Board, together with all vouchers in support thereof, and all books, papers and writings in its possession or control relating thereto, and the Auditor-General shall be entitled to require from any member, officer, employee or agent of the Authority such information and explanation as he may consider necessary for the performance of his duties as Auditor-General. (4) The expenses incurred in and incidental to the auditing of the accounts of the Authority shall be met by the Board.

No. 12 of 2003.

Annual report and publication.

31. (1) The Authority shall, within a period of three months after the end of the financial year or within such longer period as the Cabinet Secretary may approve, submit to the Cabinet Secretary a report of the operations of the Authority during such year, and the yearly balance sheet and such other statements of account as the Cabinet Secretary shall require, together with the Auditor-General’s report. (2) The Authority shall, if the Cabinet Secretary so requires, publish the report, balance sheet and statements submitted under subsection (1) in such manner as the Cabinet Secretary may specify. (3) The Cabinet Secretary shall lay before the National Assembly the reports, balance sheet and statements submitted under subsection (1), and such statements of accounts as may be approved, within a period of fourteen days of the receipt of the reports and statements, or, if the National Assembly is not sitting, within fourteen days of the commencement of its next sitting.

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Financial year of the Authority.

32. The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each financial year. PART V—MISCELLANEOUS PROVISIONS

Regulations.

33. (1) The Cabinet Secretary may, on the recommendation of the Board, make regulations prescribing any matter necessary for the carrying out of the provisions of this Act. (2) The power to make regulations conferred under subsection (1) shall be— (a) for the purpose and objective of giving effect to the Constitution and this Act; (b) limited to the nature and scope specifically stipulated in the Constitution and this Act; (c) based on the general principles and standards contained in the Constitution and this Act.

Transition provision.

34. The transitional provisions set out in the Second Schedule shall apply upon commencement of this Act.

FIRST SCHEDULE

s. 15

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PROVISIONS AS TO THE CONDUCT OF BUSINESS AND AFFAIRS OF THE BOARD

Meetings of the Board.

1. (1) The Board shall meet not less than four times in every financial year and not more than four months shall elapse between the date of one meeting and the date of the next meeting. (2) The Chairperson shall convene the ordinary meetings of the Board at the premises of the Authority. (3) Despite the provisions of sub-paragraph (1), the Chairperson shall, upon a written request by at least five members of the Board, convene a special meeting of the Board at any time where he considers it expedient for the transaction of the business of the Board. (4) Unless three quarters of the total number of the members of the Board otherwise agree, at least fourteen days written notice of every meeting of the Board shall be given to every member of the Board by the chief executive officer. (5) The quorum for the conduct of the business of the Board shall be two-thirds of the total number of members including the Chairperson or the person presiding. (6) The Chairperson shall preside at every meeting of the Board at which he is present and in his absence, the members of the Board present shall elect one person from their number to preside over the meeting of the Board and he shall have all the powers of the Chairperson. (7) Unless a unanimous decision is reached, a decision on any matter before the Board shall be by a majority of the votes of the members present and voting and in the case of an equality of votes, the Chairperson or person presiding over the meeting shall have a casting vote. (8) The proceedings of the Board shall not be invalidated by reason of a vacancy within its membership. (9) Subject to provisions of this Schedule, the Board may determine its own procedure and the procedure for any committee of the Board and for the attendance of other persons at its meetings thereof.

Disclosure of interest.

2. (1) If a member is directly or indirectly interested in any contract, proposed contract or other matter before the Board and is present at a meeting of the Board at which the contract, proposed contract or other matter is the subject of consideration, the member shall, at the meeting and as soon as reasonably practicable after the commencement thereof, disclose his or her interest in the matter and shall not take part in the deliberations over, or vote on, the matter. (2) A disclosure of interest made under this paragraph shall be recorded in the

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minutes of the meeting at which it is made. (3) Any contract or instrument which if entered into or executed by a person not being a body corporate, would not be required to be under seal may be entered into or executed on behalf of the Authority by any person generally or specially authorized by the Board for that purpose.

SECOND SCHEDULE TRANSITIONAL PROVISIONS
Interpretation.

s. 34

1. (1) In this Schedule— “appointed day” means the day this Act comes into operation; “former Board” means the Youth Enterprise Development Fund Board established by order 5 of the Youth Enterprise Development Fund Order, 2007revoked by this Act. 2. (1) The Youth Enterprise Development Fund Order, 2007 is hereby revoked. (2) The members of the former Board appointed under Order 5 (2) (a), (b), (e) and (f) of the Youth Enterprise Development Fund Order, 2007 shall become the members of the Board in the corresponding capacities for the unexpired period of their term. (3) Despite the provisions of subsection (1) and (2), the provisions of this Part shall apply upon the commencement of this Act. 3. All rights, obligations and contracts which, immediately before the coming into operation of this Act, were vested in or imposed on the former Board shall by virtue of this section, be deemed to be the rights, obligations and contracts of the Board. 4. (1) Every person who, immediately before the appointed day was an officer or member of staff of the former Board, not being then under notice of dismissal or resignation shall, on the appointed day and subject to subsection (2), become an officer or staff of the Authority on the same or improved terms and conditions of service. (2) A person who does not intend to become an officer or member of staff of the Authority shall, within a period of fourteen days from the appointed day, give a notice in writing to the Board, and such person shall be deemed not to have become such an officer or member of staff under subsection (1) but to have retired from the service of the former Board on the day preceding the appointed day. (3) The Board may make regulations with respect to pension or provident fund benefits of the members of staff of the Authority.

L. No.63 of 2007. Revocation and savings provisions. L. No.63 of 2007.

L. No.63 of 2007.

Rights and obligations.

Transfer of staff.

Assets and liabilities.

5. On the appointed day—

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(a) all funds, assets, and other property, moveable and immovable which, immediately before such day were vested in the former Board, shall, by virtue of this paragraph, vest in the Authority as the Cabinet Secretary may, by order, determine; (b) every public officer having the power or duty to effect or amend any entry in a register relating to property, or to issue or amend any certificate or other document effecting or evidencing title to property, shall, without payment of a fee or other charge and upon request made by or on behalf of the Board, do all such things as are by law necessary to give final effect to the transfer of property referred to under paragraph (a); and (c) all rights, powers, liabilities and duties whether arising under any written law or otherwise howsoever, which immediately before the appointed day were vested in, imposed on or enforceable by or against the former Board shall, by virtue of this paragraph, be transferred to, vested in, imposed on or enforceable by or against the Board.
Legal proceedings.

6. On or after the appointed day, all actions, suits or legal proceedings whatsoever pending by or against the former Board shall be carried on or prosecuted by or against the Board, and no such action, suit or legal proceedings shall in any manner abate or be prejudicially affected by the enactment of this Act. 7. Any reference to the former Board in any written law or in any contract, document or instrument of whatever nature shall, on the commencement of this Act, be read and construed as a reference to the Board. 8. (1) All directions, orders and authorizations given, or licenses or permits issued, or registrations made by the former Board and subsisting or valid immediately before the appointed day, shall be deemed to have been given, issued or made by the Authority under this Act.

Reference to written laws.

Directions, orders, etc of former Board.

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MEMORANDUM OF OBJECTS AND REASONS Article 55 (c) of the Constitution requires the State to take measures to, among other things, ensure that the youth access employment. The Youth Enterprise Development Fund Board was established under Legal Notice No. 63 of 2007 to specifically deal with matters relating to youth affairs. The Board lacks adequate legislative framework and funding. This Bill seeks to provide the necessary legislative framework and revoke Legal Notice No. 63 of 2007. The Bill establishes a National Youth Enterprise Development Authority which shall be managed by a Board comprising members drawn from both public and non-public sectors. The core mandate of the Board shall be to lent money to the youth either in their individual capacity or as registered groups. In addition to giving of loans the Board will also provide for other services including: (a) (b) (c) the provision of market access services; youth oriented commercial infrastructure; enterprise development services; and

(d) facilitation of youth to participate in the local and international labour market. The Board shall lent to the youth either directly or through partnering institutions and may incorporate a subsidiary to undertake certain commercial functions of the Board. The structure of the Bill is as hereunder— Part I (Clauses 1-4) provides for the preliminary provisions, interpretation, objects and purpose and the guiding principles of the Act. Part II (Clauses 5-23) provides for the establishment of the National Youth Enterprise Development Authority its composition, functions and powers. It also provides for the appointment of the chairperson, members. The Chief Executive Officer shall be the accounting officer and be responsible for the day to day administration of the affairs of the Board. The procedure for vacating office, filling of vacancies and employees of the Authority are provided under this part. Part III (Clauses 24-28) provides for the establishment and management of the Youth Enterprises development Fund. It is proposed that the Fund shall comprise of: (a) moneys allocated by Parliament for the purposes of the Authority not being less than two percent of all the government ordinary revenue collected every year, for the first five years after the commencement of this Act; (b) any grants, gifts, donations, loans or other endowments given to the Authority;

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(c) such funds as may vest in or accrue to the Authority in the course of the exercise of its powers or the performance of it functions under this Act; and (d) moneys from any other lawful source accruing to the Authority. The Fund shall be administered by the Chief Executive Officer on behalf of the Board and its core application will be loans to the youth. This Part also empowers the Board set the criteria including conditions for grant of loan to an applicant. This Part also contains general financial provisions in respect of the Authority. These include the requirement to prepare annual estimates, keep proper books of accounts and be audited in accordance with the relevant public finance management law. Under this Part, there is also established the two agencies namely the Enterprise Development Centre and the Youth Employment Scheme Secretariat which will be responsible for offering business development services to youth entrepreneurs and facilitating them to access the local and international labour markets. Part IV (Clauses 29-32) provides for the general financial provisions including preparing annual estimates, keeping of proper books of accounts, audit and the financial year of the Authority. Part V (Clauses 33-34) makes provisions for miscellaneous provisions including the powers to the Cabinet Secretary to make regulations for the better carrying out of the provisions of the Act. It also provides for the transitional provisions for transiting the Board established under the Youth Enterprise Development Fund Order, 2007, Legal Notice for purposes of continuity. The transitional provisions relate to: (a) (b) (c) (d) (e) (f) (g) the Board; rights and obligations; employees of the Board; assets and liabilities; legal proceedings; laws; and administrative directions, orders, authorizations, licenses etc.

The enactment of this Bill shall occasion additional expenditure of public funds which shall be provided for in the estimates.

Dated the ……………………….......................…………….., 2012. PAUL OTUOMA Minister for Youth Affairs and Sports