Fund disburses Sh7m to groups

Over Sh7 million from the Uwezo Fund was on Saturday shared out among 78 groups.

The beneficiaries are among the 100 groups, including those of persons with disabilities, youth and women, that applied for the funds last year.

The groups from Roysambu, Nairobi County, were approved for the loans after vetting.

They are expected to use the money to venture into income generating activities or expand existing businesses.

The funds’ Oversight Board acting Chief Executive Officer Wilfred Buyema said the money was drawn from the larger Sh260million kitty set aside for the 17 Nairobi constituencies in the 2014/2015 financial year.

“We have given you a kick-start to your businesses. We also hope the training we have given you will help you invest wisely. We are available for consultations,” Mr Buyema said.

Representatives from the ministry of Devolution, Kamukunji MP Yusuf Hassan and Members of County Assembly were among guests during the cheque issuance ceremony.

REPAY LOANS

The groups were also urged to repay the loans as soon as possible for others borrow. The groups got between Sh50,000 and Sh100,000 of the interest-free loans.

No group will get more than Sh100,000 at once. Those who apply for more will get the loans in tranches of Sh100,000 where further allocation will be determined by how a group has utilised the previous loan.

“The board recommended that the amount disbursed should not be more than that until such a time constituencies have ascertained the actual group savings in each case,” Mr Buyema said.

In December last year, Uwezo Fund defended this position based on the fact that some of the proposals they had received were either lacking or groups provided inconsistent information about their activities including savings.

Mr Buyema added: “This does not mean groups will not get funds as per the regulations. We also urge groups to come up and discuss ways of utilising the funds given better.”

MAXIMUM AMOUNT

The Uwezo Fund Act 2014 puts Sh500, 000 as the maximum loan a group can get.

Mr Buyema said the ceiling will be raised to the amount provided for in the law once groups have been trained and confirmed to have the capacity to repay without difficulties.

The revolving fund is a government initiative to enable groups acquire interest-free loans to set up businesses or open new ones. The fund has a grace period six months from remittance.

The money was initially set aside for a possible presidential run-off after the 2013 General Elections.

The fund is administered by the ministry of Devolution.