Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-28 12:08:17
Tana River Governor Dhadho Godhana has made the decision to suspend the Inuka Fund, a revolving fund set up by the county government in 2022 to support the growth of Small and Medium Enterprises. This decision comes as a result of the significant number of borrowers who have defaulted on their repayments. The beneficiaries of the fund have failed to remit the required payments, prompting the governor to take action to prevent the county administration from facing legal repercussions.
Governor Godhana expressed his disappointment, stating that the suspension of the program was necessary to avoid potential legal consequences for mishandling government funds. He emphasized the importance of the government reclaiming the funds that were lent out for the expansion of businesses.
The Inuka Fund was designed to support residents and groups who applied through ward committees, as well as individuals who demonstrated their ability to repay the loans. However, out of the Sh75 million that was disbursed, only Sh15 million has been repaid, leading to concern and frustration for the county government.
The governor warned that all possible measures would be taken to recover the outstanding funds, including involving the Directorate of Criminal Investigations. He made it clear that the administration would not tolerate defaulters and would pursue legal action if necessary.
While the administration is firm on the need to recover the funds, some of the beneficiaries have appealed for a waiver due to challenges and losses they experienced during floods. They believe that the terms of the loan should be renegotiated in light of the unforeseen calamities that affected their ability to repay.
The suspension of the Inuka Fund reflects the broader issue of loan defaults in Tana River County. The county has a history of defaults, including loans from the Higher Education Loans Board, the Uwezo Fund, the MasterCard Foundation Fund, the Tana Teachers Fund, and the Youth Fund. The situation highlights the challenges faced by borrowers and the need for a balanced approach to loan recovery.
