The National Government Uwezo fund has accrued bad debts which stand at Ksh 1.5 billion amid concerns over misinformation hampering timely repayments.
Speaking at Athi-River, Machakos County during the disbursement of the non interest fund, Uwezo funds oversight board director Sam Ogolla said most Kenyans who have failed to refund the revolving loan are incited by politicians not to repay.
Ogolla says the bad debts stand at 48pc compared to 52pc repayment rate, an amount higher compared to the repaid amount.
He said the fund officials have been striving to educate Kenyans about the essence of the loan and have now included the sensitizing online.
Mavoko Constituency has been ranked as the top nationally on repayment which stands at 85percent.
So far, 379 groups have benefited from loans worth Ksh 42 million with more women and youth groups applying for the fund.
Beneficiaries laud the fund saying it is significant to women and youth in business as it has helped them grow their enterprises.
They say repaying the loans on time has been more beneficial as the kitty amount is increased further saying the repayment is friendly due to lack of additional interest.
According to the area Mp Patrick Makau, training the group members on best business practices have been key in ensuring the members are able to repay the loan after making profits from the projects funded by the kitty.
Makau says making it mandatory for groups to outline the intended business ideas is key. The legislature says the beneficiary groups are discouraged from subdividing the money and instead they work as a team.
Table banking individual loans from the kitty has also proved to be a successful venture among beneficiary members.
During the disbursement, 20 starter groups and groups of people living with disability are among those who benefited from a Ksh 2.4 million fund.