At least 15 per cent of the Uwezo Fund beneficiaries in Navakholo have defaulted on their loan repayments.
Navakholo MP Emmanuel Wangwe said the fund had only recovered Sh2.6 million out of Sh12 million distributed during the first phase last year.
Speaking during distribution of Uwezo Fund cheques in Navakholo in the second phase of the programme, the MP urged beneficiaries to invest in viable projects to reap maximum profits.
"Navakholo received Sh20 million towards the Uwezo Fund kitty. In the first phase, we distributed Sh12 million. About 85 per cent of those who benefited are performing well," said Mr Wangwe.
The fund distributed Sh7 million to 107 groups in the second phase, 12 of them comprising people living with disabilities.
The MP urged defaulters to look for alternative means to repay the loans. He also advised youths not to wait for white-collar jobs.