Groups urged to pay back government loans

Beneficiaries of a government kitty have been told to speed up their repayments in order for the project spread out. More than Sh100 million meant for poverty eradication was distributed to 25 districts across the country.

Planning minister Wycliffe Oparanya gave out Sh4 million to 72 women and youth groups in his Butere constituency Wednesday. He said districts were carefully chosen after considering the poverty level index. 

He said Thika and Gatundu districts had already received their allocation of funds. 

Mr Oparanya said other government funds meant for women and youth would only benefit banks, and not the targeted beneficiaries.

He said the poverty eradication funds had a seven percent interest rate while the women and youth funds had strings attached that made it impossible for beneficiaries to access the money, defeating the purpose of the kitty.

The chairman of Poverty Eradication Commission Mr John Koech  disclosed that Butere had received Sh5 million of the total allocation and challenged locals to take the advantage of a railway line in the area and other emerging facilities in Western Province to venture into viable agricultural activities. 

Butere District Development Officer Mr Jacob Omumia stressed the need for training beneficiaries in entrepreneurial skills as it would enable them manage the funds wisely. 

Omumia said the groups would be required to start repaying the funds in one year time since it is a revolving fund.