I'm assuming from the article in today's Arab Times, page 6, that the transvestites are almost certainly Kuwaiti - as we all know if they're foreigners it would immediately state that, along with names, place of work and the imminent deportation details. So along with 'blaming the concerned officials for not conducting sufficient awareness programmes' we have another farcical incident and excuse.
Firstly, the fact that Kuwaitis have a special word for male homosexuals on the receiving end rather than giving end is bizarre. It seems that out here if you are the giver then you are not gay. With that little misnomer outed and clarified then we move on to why homosexuality has become quite prevalent. If you segregate the kids then it is almost understandable that when boys become aware of their own sexuality that they will want to experiment. And if there are others around that are equally as interested, every opportunity for them to mix freely then the unspeakable may occur. No pregnancies, lots of testosterone, and who's going to suspect? In the UK it was quite a common phenomena amongst boys at all boy boarding schools until the schools realized that more supervision and monitoring was called for.
Until the 'problem' is acknowledged, there will be no solution.