Uwezo, the country’s affirmative action fund, is enlisting the help of chiefs and youth groups across the country to increase repayment of Sh4.6 billion issued to support enterprises across the country.
The Fund, which was established by the Jubilee government to assist groups of youth, women, and People Living with Disabilities (PWDs) in expanding their businesses through low-cost credit, claims that over the last four years, the new measures have increased credit repayment by groups by five percentage points.
Uwezo, which was founded in 2014, has disbursed over Sh7 billion through its constituency offices, with beneficiaries repaying Sh2.5 billion, representing a repayment rate of 39.5 percent.
This leaves about Sh4.6 billion in the hands of various groups across the country, a portion of which the fund is working to recoup.
“The Board has operationalized guidelines on loan repayment strategies which include demand letters and recommitment letters to defaulting groups, enlisting the support of National Government Administrative Officers and close monitoring of beneficiary groups,” said Uwezo chief executive officer (CEO), Peter Lengapiani.
“These strategies have been operational since 2018 and have resulted in a significant improvement in loan repayment from 34 percent in 2018 to 39.45 per cent in March 2022.”
The Fund says initially it had experienced a challenge where it was misconstrued to have been set up to issue free cash, which prompted defaults.
It has been conducting public education that has led to improved repayment rates.
The Fund plans to roll out a pay bill number through which borrowers can repay the laons.
