Rédaction Africa Links 24 with Daily Nation
Published on 2024-02-10 10:59:25
The Uwezo Fund, a revolving fund initiated by former President Uhuru Kenyatta’s administration in 2013, was designed to provide women, youth, and people living with disabilities access to finance to boost businesses and enterprises at the constituency level. However, a decade after its launch, the fund is facing a major challenge – the rising number of defaulters, as it was reported that defaulters have increased to 48 per cent, amounting to Sh1.5 billion.
This revelation was made during the disbursement of the revolving fund at Mavoko Constituency, Machakos County, where Uwezo Fund Oversight Board Director, Sam Ogolla, cited misinformation from the political class as the primary cause of the low repayment rate among beneficiaries. He stated that misinformation has led to a repayment rate of 52 per cent countrywide, translating to Sh1.5 billion in bad debts. According to Ogolla, some beneficiaries have been misinformed by political and constituency leaders that the money from the fund should not be repaid as it belongs to the government.
In response to the prevailing challenges, the Uwezo Fund Oversight Board is engaging with the political class to correct the misinformation and sensitize beneficiaries on how the revolving fund works and its importance in improving their lives. Furthermore, Mavoko Constituency has been recognized as the best constituency in terms of Uwezo Fund repayment rate for four years in a row, with a repayment rate of 85 per cent. A total of 379 groups in the constituency have benefited from loans worth Sh42 million, with more women and youth groups expressing interest in accessing the fund for their businesses.
The success of Mavoko Constituency has been attributed to the emphasis on training group members on best business practices, mandatory outlining of proposed business ideas, and discouraging beneficiaries from sharing the money and instead working as a team. These measures have contributed to the growth of businesses and the improvement of lives in the constituency.
Mavoko MP Patrick Makau highlighted the importance of beneficiary training in ensuring loan repayment and the need for leadership to discourage incitement of beneficiaries not to repay the funds. Beneficiaries have shared success stories in poultry, agriculture, and other small and medium enterprises, emphasizing the significance of the fund in supporting women and youth in business. They have also praised the friendly repayment terms, as there is no additional interest and timely repayment increases the loan amount available for future disbursements.
During the recent disbursement, 20 starter groups and groups of people living with disabilities were among those who benefited from a Sh2.4 million fund. Overall, the Uwezo Fund continues to play a critical role in empowering women, youth, and people with disabilities to grow their businesses and improve their lives, and efforts are being made to address the challenges that have led to the high default rates.
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