High default, late payment rates hit Uwezo Fund loans
Coast
By
Tobias Chanji
| Sep 02, 2016
KWALE: Youth Affairs and Gender Cabinet Secretary Sicily Kariuki has disclosed that half of the money borrowed from the Uwezo Fund is not repaid on schedule. She said delayed repayments and defaults were most prevalent in Msambweni constituency at 43 per cent.
Speaking during a tour of various youth and women groups projects Thursday, the Ms Kariuki urged youths to ensure that they repaid their loans on time to enable other groups to benefit from the kitty. She also distributed Uwezo and Women Enterprise Fund cheques.
The CS said the notion that the fund was a political affair caused many groups to default.
"Because this fund was started when Uhuru became President, people assumed it was free money and thought they wouldn't need to pay it back. It is not good to mix politics and money," she said.
Msambweni Youth Officer Festus Matee told The Standard that most beneficiaries thought the money was given as handouts. And the CS revealed that most of the youth groups did not even use the money for the business projects they had applied for.
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"Some groups disintegrated while others stopped paying midway," she said.
Groups that have disintegrated over the last two years stand at 30 while those that started and stopped number 20.
Mr Matee added his office was planning to summon the groups through area chiefs who signed as guarantors.
"We will summon them to see how prepared they are to pay the money back. Eventually, we will forward their names to the Credit Reference Bureau so they do not benefit from credit facilities in future," he added.
The CS also called on youths to be alert as the country heads into an electioneering period, to avoid being used by politicians. She said the future of the country depended on the youth so they should have a positive influence in their communities.
The CS was accompanied by Kwale County Woman Representative Zainab Chidzuga who said the National Government Affirmative Action Fund (NGAAF) has gone a long way in uplifting the lives of youths and women in various counties.
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