Public Service CS Sicily Kariuki (left) hands over Sh18M Uwezo Fund cheque to Nakuru women at Nakuru's Nyayo garden on 02-03-2016, Kariuki called upon women from the county to use the fund with constructive and development programmes which will raise their affairs [PHOTO:BONIFACE THUKU/Standard]

Beneficiaries of a revolving fund set up to empower the youth have defaulted in repaying loans totalling Sh800 million. This is about half of the amount due for repayment and at least 18 per cent of the funds loaned to the youth under Uwezo Fund.

Records from the Ministry of Public Service, Youth and Gender Affairs show that as at June 30, 58,549 groups across 290 constituencies owed the Government up to Sh1.8 billion in mature loans.

However, the records from the Ms Sicily Kariuki-led ministry revealed that only Sh946.5 million was repaid under the same period. This leaves a default debt of about Sh818 million. Seven constituencies, mostly from North Eastern, have defaulted on the loans. Mandera West, Lafey, Wajir North, Fafi, Balambala, Turkana West, and Banissa are yet to repay their loans. This is out of the 290 constituencies where Sh5.1 billion was disbursed out of an allocation of Sh5.4 billion.

Large Defaulters

Having paid no cent at all, Mandera West leads in defaulting with a total of Sh12.4 million, followed by Lafey Sh10.4 million, Wajir North Sh9.9 million, Fafi Sh4.8 million, Balambala Sh3.6 million, Turkana West Sh3.1 million, and Banissa Sh2.7 million.

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Also, these constituencies had no revolving fund which could mean uptake of loans in the areas is almost zero.

Kisumu East had the least of revolving fund of Sh120,000 which means either poor repayment or poor uptake of the loans.

Kiharu led with Sh11.7 million of revolving fund with Sh11.9 million repaid from Sh8.4 million due. This is an indication that some individuals were paying their loans even before they are due meaning their investments are profitable.

Other well doing constituencies -among the 33 that have revolving funds- are Makueni with a revolving fund of Sh7 million, Gichugu (Sh5 million), Nakuru Town East (Sh5.1 million), Matuga (Sh3 million) and Nandi Hills (Sh1.9 million).

“Thirty three constituencies have revolved Sh111 million from amounts repaid by beneficiary groups. Clearly this indicates that the fund is achieving its objective of benefiting more,” read a statement from the ministry.

The statement added: “In the 2016-17 financial year, the Government has allocated a further Sh500 million to the fund which the board has directed be disbursed to the all 290 constituencies.”

According to the breakdown, out of the Sh5.3 billion set aside for groups of youth, women and People Living with Disabilities (PLWD), a total of Sh5.1 billion was disbursed to 58,549 groups.

They comprise 36,654 women groups, 20,461 youth groups and 1,434 of PLWD. “This has greatly expanded the access to finances for the enterprises for the target groups. The loans are accessible for start-up as well as expansion of existing ones,” the statement said.

Also, 8 per cent of the fund facilitated training of 870 trainers from 290 constituencies committees who later trained groups on general information on Uwezo Fund, business development services, table banking and access to government procurement opportunities.