High default rate by Uwezo fund beneficiaries threatens initiative

High rate of defaulting among Uwezo funds beneficiaries is hampering operations of the program.

Principal Secretary in the State Department of Gender Affairs, Safina Kwekwe says liquidity constrains precipitated by the delays and non-repayment of the loans has seen deserving groups miss out on loans meant to boost their livelihoods, thus undermining the government’s objective.

To realize vision 2030 as well as the attainment of the millennium development goals 1 and 3, the government launched the Uwezo fund.

The fund was meant to make it possible for the youth, women and people with disabilities to access finances to start and run their enterprises especially at the constituency level. However, the increasing default rate is threatening to cripple the initiative.

PS Kwekwe warned that delays and non-repayment of the loans, made it difficult for qualified groups to receive the funds due to financial constraints.

The current situation has seen a number of youth and women groups miss out on loan disbursement.

Kwekwe further called on county leaders to encourage compliance among constituents so as to ensure feasibility of UWEZO fund.

  

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