Tana River shut out of Uwezo Fund over default

Counties

Tana River shut out of Uwezo Fund over default

Thursday, January 24, 2019 20:16

By STEPHEN ODUOR |

The Ministry of Public Service, Sports and Gender has blacklisted Tana River County from benefiting from Uwezo Fund following massive default.

Speaking at a public forum in Hola, principal secretary Safina Kwekwe said the residents had not paid their debts for the last five years.

"It is shameful for you to take these funds and fail to return them so that they can help others,” she said.

Ms Kwekwe said out of the Sh61 million the residents had been allocated, Sh58 million had so far been borrowed in the last five years, with only Sh1 million having been paid back.

She said the trend has since crippled development in the county, adding that the situation could affect other funds and relationship between residents and financial institutions.

"You are supposed to pay so that another person can borrow. Other counties are moving forward, but in Tana River, we are not making progress because some of you are holding others hostage," she said.

Further, the PS said the rate of default is high in the youth enterprise kitty with Sh14 million borrowed in the last 11 years yet to be repaid.

She urged the youth to pay up and seek more loans in order to build an enterprising society that “can compete both nationaly and internationaly”.

"Borrowing in Tana River is still too low, we still are giving Sh6 million here, while Kilifi the youth are at Sh13 million and in Mombasa Sh20 million, and they are paying up.”