Groups of persons with disabilities (PWDs) in the sub-county of Ugunja have been notified for failing to pay loans from the Uwezo Fund.
Since the establishment of the fund in 2014, five groups of PWDs have benefited in the area, but not a single group has repaid the loan.
“The situation is difficult for us because these are circulating funds,” said Mr. Ainea Ayamba, who is the Chairman of the Uwezo Fund in the sub-county of Ugunja.
He has asked the members of the groups to understand that the Uwezo money is not a grant but a loan without interest.
“We often lend a group about Sh100,000 for the first time. If they pay, then the rate goes up,” he said.
He has also criticised groups of young people for being lax.
“Out of 50, only six groups of young people have been paying and getting more loans. The others have not paid, and this situation makes it difficult to give loans to other groups,” said Mr. Ayamba.
But on the other hand, mothers’ groups are doing well; 310 have benefited since the establishment of the Uwezo Fund.
Ms. Lilian Kinuthia, who is an official from the Uwezo Fund Secretariat, says the fund has changed the lives of many.
“Many groups have benefited from Uwezo Fund loans, and many women are running their businesses in different parts of the country,” said Mrs. Kinuthia.
In the Ugunja constituency, a total of Sh40 million has been lent to 373 groups.
In addition to these groups, eight cooperative societies—SACCOs—have benefited in the Ugunja constituency.