Youth groups in Nyeri abandon Uwezo Fund, seek loans from other saccos

Youth groups in Nyeri County are abandoning the Uwezo Fund and seeking funding from other local financial institutions, a survey has revealed.

The flagship Vision 2030 programme aims to empower youth, women groups and persons living with disabilities but seems to be losing popularity among the youth in Nyeri.

Some of the youths told Nation.co.ke that they were turning to saccos and corporates for financial support saying that the process was shorter and easier.

They added that the saccos are able to offer SME credit unlike Uwezo Fund which sets the minimum loan given to Sh50,000.

Despite Uwezo funding being interest-free, these groups are opting to pay the 1 per cent interest charge that comes with the loans arguing that these financial institutions also offer continuous guidance and oversight on their ideas and projects.

NEED GUIDANCE

“Despite Uwezo giving bigger loans, there really isn’t much guidance or follow-up after that.

“It really isn’t just monetary support we seek but also guidance,” said Faith Munyiri an official of Dynamic Young Enterprise, a youth group based in Nyeri Town.

Peter Muraguri, a 25 year old student at Karatina University and a chicken farmer, also said that he tried acquiring funds through the Uwezo programme, a move which never materialised forcing him to turn to a local sacco.

“I waited for months but eventually I just had to turn to a sacco. It was much easier that way,” said Muraguri.

James Macharia, a research and development officer at Taifa Sacco in Nyeri, said in an interview that the sacco had been receiving numerous credit applications from youth groups who were seeking small loans or had given up on the application hustles associated with the Uwezo Fund.

“We receive lots of applications. Some of these young people apply for as little as Sh5,000,” said Mr Macharia.

ENTREPRENEURIAL IDEAS

Youths around the county have for a long time sat on entrepreneurial ideas unable to incubate them into actual businesses due to lack of adequate funding hence turning to vices like alcoholism.

“This county possesses youths with brilliant ideas in fields of entrepreneurship and ICT and that is why local corporates are coming in to support these ideas,” said Mr Macharia.

Local financial institutions, in a bid to support entrepreneurship, have been holding forums to draw young innovators and thereafter offering them with financial support.

Speaking on the matter, Ms Agnes Mugai, the chairman of the Uwezo Fund committee, told Nation.co.ke that the reason the youth groups are opting to seek loans from other institutions could be their failure to meet the minimum requirements for Uwezo.

“These groups are running to other institutions because they have failed to meet the (Uwezo) requirements.

“The funds are available and we are willing to train the groups on the process (of getting them),” Ms Mugai said.