Groups that default in repaying Uwezo Fund loans will be locked out of disbursement, Seme sub-county groups were warned as 110 received a total of Sh14 million to scale business initiatives.
Area MP, Dr James Nyikal while presiding over the disbursement at Diemo primary school Friday called on the groups to capitalize on the funds boost their ventures and repay promptly to allow repeated support.
“This money belongs to you, but even what is yours cannot be used unsustainably,” said the lawmaker, “the government has pumped this cash to pivot ventures, it (government) expects it to yield returns while spurring development.”
Out of the 110 groups, 11 were youth, 87 women and 12 people living with disabilities. The groups of between 15 to 25 people received Sh250, 000 for the biggest beneficiaries and Sh100, 000 for the least benefactors.
Twelve groups failed to get the money.
The Uwezo kitty representative at the sub-county, Mrs Rose Nyawara said that they considered the groups’ activeness, bank account reserve and registration with Social Services ministry in allocating the money.
“The groups must have been registered and active with a bank balance of not less than Sh5, 000 for the one with the least number of members,” she said.
The constituency received a total of Sh17 million.
Mrs Nyawara said the Sh3 million that was not disbursed would be remaining in the account until the next disbursement.
The monies were to be disbursed early last month, with plans to collide with the Presidents planned visit of Kisumu. “We had planned to give out the money when the President visited. The cancellation of the trip therefore delayed the disbursement,” she said.
The official said the groups had viable projects and they were not expecting default in repayment. “We signed a memorandum of understanding and we do expect any challenge in regaining the funds.”
Table banking by most of the women groups, poultry rearing, fish farming and trade in construction raw material were some of the projects ventured into by the associations, according to Nyawara.
The past week has seen most of the seven sub-counties in Kisumu distribute the loans to groups.
A six-month grace period is allowed to the groups before repayment kicks off for 24 months, then the cycle repeats.