County seeks debt collectors to deal with loan defaulters
By Kamau Maichuhie
| May 3rd 2019 | 2 min read
The county is looking for debt collectors to help it recover money loaned through the defunct Kiambu Biashara Fund.
The Sh300 million Fund was launched in 2015 by former Governor William Kabogo’s administration.
It targeted the youth who were offered loans to start small businesses. A number of those awarded the loans have since defaulted on payment.
In an advert in one of the dailies, signed by County Secretary Martin Njogu, the county invites bidders to apply for a tender to collect the money from defaulters.
The bidders have until May 20 to present their bid documents.
To encourage defaulters to pay up, the county also announced a waiver of penalties for unpaid Biashara Fund loans.
“The county government with the approval of the governor hereby gives notice to all Kiambu Biashara Fund loan defaulters that penalties have been waived,” states Dr Njogu.
The waiver is, however, on condition that all outstanding loan arrears are cleared and the defaulters contact the department of youth affairs, sports, ICT and communication for an alternative repayment plan.
The waiver period runs between May 3 and June 3.
The county did not indicate how much the defaulters owe.
Last month, Governor Ferdinand Waititu launched a new loan kitty dubbed Jijenge Fund.
Waititu said the Sh200 million kitty would offer interest-free loans to the youth, women people living with disabilities and other vulnerable people in the society.
The governor called on residents to take advantage of the new fund to start businesses.
“The fund will give out loans to individuals, groups and also finance local purchase orders to empower residents to start their own business,” said Waititu.
He said his administration would increase the fund by Sh100 million each financial year to raise the number of beneficiaries.
During the launch, Waititu appealed to individuals and groups who had taken loans through Biashara Fund and had defaulted to start repaying so that other people can benefit.
“We are willing and ready to re-negotiate with those who took up loans under Biashara Fund but have defaulted. They can come to us so that we can agree on a new repayment schedule,” he said.
Deputy Governor James Nyoro challenged residents to take advantage of Jijenge Fund to generate self-employment in a region grappling with thousands of unemployed youths.
“This is a kitty that, if well utilised, can help our youth to create jobs for themselves and others by starting small agro-processing firms through value-addition,” said Dr Nyoro.
Are we seeing early indicators of a financial crisis?
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