Uwezo Fund performs poorly in constituencies as Kiharu tops

Naomy Kadesa, a fashion designer and beneficiary of Uwezo Fund partner, Digital Opportunities Trust (DOT) Kenya, displays her products at an exhibition during a competition at Kenya National Library Services Grounds in Kisumu. 90% of Kenya’s 290 constituencies have not revolved a single cent of the multi-billion shilling Uwezo Fundkitty set up by the government in 2014, it has emerged.
 (PHOTO: KEVINE OMOLLO/ STANDARD)

Ninety per cent of Kenya’s 290 constituencies have not revolved a single cent of the multi-billion shilling Uwezo Fundkitty set up by the government in 2014, it has emerged.

The revelations, through an Uwezo Fund Oversight Board report, came as Kiharu constituency was ranked as the foremost in terms of absorption and re-taking of the loans meant for youth, women and persons with disability.

The concept behind Uwezo was to provide affordable credits using an initial capital of Sh5 billion originally earmarked for re-run of the 2013 presidential poll.

The fund grows by revolving the repaid funds within the respective constituencies, as well as through additional government allocations.

The finding that 90 per cent of the constituencies (257) have not benefited from the revolved funds means the fund is operating below capacity, although the board does not think so.

“Thirty three constituencies have revolved Sh111,296,742 from the amounts repaid by beneficiary groups in their respective constituencies. Clearly, this indicates that the fund is achieving its objective of revolving the funds to benefit more groups,” the board said in a paid-up advertisement.

According to the report, published this week, almost all constituencies — except seven — have repaid some amounts of the loans advanced to their constituents.

Of the seven, six are in northern Kenya — Banissa, Balambala, Fafi, Wajir North, Lafey and Mandera West. The seventh is Turkana West Constituency.

The top-ranked constituency, Kiharu, was allocated Sh18 million as of June 30, but has had a total of Sh30 million loans approved for disbursement over the same period, largely due to successful repayments.

Exceeding target

From the sum allocated, Kiharu groups have repaid Sh11 million, exceeding the target of Sh8 million set by the board as due by June 2016 by Sh3 million. Consequently, the board has revolved the same Sh11 million in the constituency, the highest in any constituency.

A total of 327 groups have benefited from the funds in the constituency. Kiharu MP Irungu Kang’ata was all smiles as he shared the secrets of successful uptake and absorption of thefunds in his in the constituency.

“It’s largely due to the efficiency of my committee. It disbursed the cheques early and to the right groups. Some constituencies have ghost groups and that is why repayment is an issue,” Kang’ata said.

He said that he personally sensitised the groups about the fund and its benefits if deployed successfully. He believes this had an impact in the groups mentality and approach to the funds.

Kang’ata also revealed that table-banking is the favourite project for most of the beneficiaries in his constituency.

In second place is Makueni Constituency, represented in Parliament by Daniel Maanzo. It was allocated Sh24 million but has ended up being paid Sh32 million in loans, again through successful repayment.

By June, Makueni’s 341 groups had repaid Sh9 million out of which Sh8 million was revolved back to the same constituency.

Third placed is Gichungu, followed by Ol Kalou as Funyula came fifth. Alego Usonga, Bahati, Kabete, Kajiado North and Saboti constituencies followed in that order to position 10.

The only other constituencies that have revolved a bit of the funds through successful repayments are Kitui South, Nakuru Town East, Matuga, Khwisero, Laikipia West, Nambale, Kipipiri, Baringo South, Gilgil, Kikuyu, Othaya, Limuru, Ruiru, Nakuru Town West, Kisumu West, Nandi Hills, Juja, Njoro, Keiyo North, Githunguri, Keiyo South, Voi and Kisumu East.

Seventy five per cent of the initial Sh5 billion capital was distributed equally in all constituencies, while 25 percent was disbursed on the basis of the Kenya National Bureau of Statistics’ Poverty Index.

From the report, Turkana Central received the highest allocation at Sh29 million, out of which only Sh16 million was approved for disbursement to 164 groups. They were expected to have repaid Sh3 million by June, but had paid nothing and consequently no funds were revolved there.

Second place

The second placed in terms of allocations was Kinango constituency, which received Sh27 million, out of which Sh25 million was approved and disbursed to 205 groups by June.

They were supposed to have repaid Sh6 million by the same period but they had only repaid Sh4 million.

Other constituencies which received a bigger share of the funds are Mandera North (Sh25 million), Magarini (Sh25 million), Lunga Lunga (Sh23 million) and Kitui South (Sh23 million).

Kitui South has the highest number of beneficiary groups at 442, followed by Ndaragwa (384), Alego Usonga (374), Nyakach (358) and Nyaribari Chache (349). The constituencies with the least number of beneficiary groups are Isiolo South (55), Lafey (75), Banissa (83) and Laisamis (83).

Since 2014, a total of Sh5.3 billion has been disbursed to all 290 constituencies, to 58,549 groups comprising 36,654 groups of women, 20,461 youth and 1,434 persons with disability.