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Low Uwezo loan repayment hurting groups

Groups and individuals who defaulted on loans awarded to them by Uwezo Fund in Awendo Sub County, risk being blacklisted from accessing future government funding.

The  Sub  County  Youth Development  Officer, Boniface Obonyo  while speaking during a stakeholder meeting in Awendo town on Wednesday, regretted that loan repaying rate still remained low, despite his spirited sensitization and reminder letters to the loan defaulters.

He  said the department was considering recommendationthat defaulters be listed with the Credit Reference Bureau (CRB), a  move that will deny groups and individual members ignoring repayment calls from accessing future state loans.

Obonyo  revealed  that only close to Sh.3 million has been recovered out of about Sh.17 million loaned to Youth, Women  and People Living with Disability groups since 2013.

He  said the low repayment rate of 19 percent has denied other groups chance to borrow the loan since Uwezo is revolving fund given out at zero percent interest rate.

Due to poor repayment rate at 19 percent, Awendo Sub County has been locked out by the Ministry of Public Service, Youth  and  Gender Affairs from accessing groups funding until they boost their loan recovery rate to more than 50 percent, Obonyo added.

He  said the decision to sideline the sub county  from  future groups  funding is  already hurting 10 groups  with  cleans records.

Obonyo  however, noted that they are working closely with the ministry of Interior by holding barazas to sensitize locals on the need to repay government loans and the resultant effects in case of failure to comply with the directive.

While  addressing the same meeting, Awendo Deputy County Commissioner (DCC), Joseph Satia reiterated that chiefs  and assistant county commissioners are playing key role in sensitizing government programs, including Uwezo funds loans recovery.

By  Geoffrey Satia

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