Only 22 per cent of beneficiaries of the Uwezo Fund in Migori county has paid back their loans amounting to Sh31.3 million, Kuria East youth officer Nelson Siele has said.
Government figures show Migori disbursed Sh145 million to beneficiaries, translating into an 80 per absorption rate.
The Uwezo Fund account in Migori has a total of Sh62 million which can’t be disbursed until defaulters pay.
Siele said the fund, which targets youths, women and people living with disabilities had experienced more youths groups defaulting.
Speaking at Kegonga centre to the press on Thursday, Siele said the fund was aimed at enabling beneficiaries to promote their businesses, but some feel it is a handout.
“Most beneficiaries who have failed to pay took the money and went into hiding,” Siele said.
He said many people including women had defaulted but most of them had allegedly been convinced by the youths not to repay.
“With more money outside, the government has instructed us to ensure defaulters pay before we can release more,” Siele said.
In Migori, Kuria West and Kuria East subcounties recorded a recovery rate of 54 per cent and 37 per cent respectively, followed by Awendo with 20 per cent.
“Individuals should be disciplined and repay their loans to enable others also benefit from the fund,” he said.
He also urged youths to avoid online loan apps which have high interest rates but instead utilise various funds made available by the government.
These include the Youth Enterprise Development Fund, Women Enterprise Fund and National Affirmative Action Fund.
“There is this trend of young people borrowing aimlessly online. Let us stop because those platforms are exploitative,” Siele said.
Siele said the government has a lot of opportunities and urged the youth to look for information to benefit from them.
(edited by O. Owino)
