Women and Youth in Malindi Sub County in Kilifi County have been advised to form groups to enable them get Uwezo Fund loans provided by the government to boost their businesses.
Speaking to Sacco Review in his office in Malindi town recently, Malindi sub-county Youth Development Officer, Mtana Mwahunga revealed that Uwezo Fund loans in the sub county are only given to women and youth who have formed groups, but not to individual people.
“The government last year disbursed loans to women and youth groups amounting to Kshs 25,685,000 to enable them carry out their activities more effectively and efficiently,” he disclosed.
The sub County Youth Development Officer, however decried the low rate in which the groups received loans and I repayment, stating the Uwezo Fund loans given to women and youth in the area is a revolving Fund, and should be paid promptly to enable other groups to benefit from the same loan products.
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He further lamented that many groups which received the loans have not repaid, noting that out of the 265 registered groups only 9 groups have so far repaid the loan.
“Out of the shillings 25,685,000, loans given to women and groups in the area only shillings 4,000,000 have been repaid by the groups,” Mwahunga lamented.
He, also said that the groups repaid one to two instalments and then stopped.
“Loan repayment failure by the groups has actually led to the collapse of their group’s development projects”, he added.
By Tsozungu Kombe
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