The mayor of Bombo Town council Uthman Ramandan has attributed the failure of young people to pay back funds from the youth fund to lack of skills.
He said many youth who got the money did not have enough knowledge for starting income-generating businesses.
Ramathan told X-FM that his area council issued out sh40m but has since recovered only sh1.5m.
He said this is so because most youth invested the money in projects they could not manage and sustain their respective businesses.
According to the mayor, most of them chose agriculture but without sufficient knowledge of the projects and therefore made losses.