Uwezo fund facing challenges in loan recovery

Kapsowar Tuesday, May 16, 2023

KNA by Rennish Okong’o  

Marakwet West Sub County Youth Fund is facing challenges in loan recovery, as 167 out of the 270 groups that have been funded are in default, totaling Sh10.6 million.

The situation has resulted in only 46 groups being eligible for new loans, which will be doubled in amount.

The sub-county youth officer, Stephen Adawo, speaking during the induction of new Uwezo Fund committee, disclosed that the office is looking into ways of making the defaulters pay through continuous follow-ups.

Adawo divulged that the loans have no interest, and groups are given a grace period of six months before commencing repayment.

Despite this, the uptake of the fund is deficient, with only 30 groups applying for funding. Adawo tasked the committee members with creating awareness and sensitising the fund to the people so that many will benefit from the program.

He added that the challenges in loan recovery faced by Marakwet West Sub County Youth Fund are not unique as many loan programs, especially those aimed at the youth, face similar challenges.

Default rates can be high, and the recovery process can be tedious and time-consuming. However, the impact of such programs is immeasurable, especially in empowering young people economically, said Adawo.

In Marakwet West Sub County, the fund has already helped 103 groups in the last 3 years, with a total of Sh6.8 million disbursed. The fund has enabled many young people to start businesses, generate income, and support their families.

It is, therefore, essential to address the challenges faced by the fund and ensure that it continues to impact young people positively, noted Adawo.

He reiterated that The Uwezo Fund committee has a crucial role to play in creating awareness and sensitization of the fund to the people.

Further, the committee must work closely with the youth officer to ensure the defaulters are held accountable while encouraging more young people to apply for funding.

He urged the groups that are on default to repay their loans so as to give others a chance to benefit from the fund, thus becoming a beacon of hope for the youth in Marakwet West Sub County.

Courtesy; K.N.A