A fresh audit finding has placed the government under renewed scrutiny, with billions of shillings issued through a programme meant to empower women, youth and persons with disabilities now facing serious questions over recovery. Read Full Article Here
Auditor-General Nancy Gathungu has raised concerns over Sh4.2 billion in Uwezo Fund loans that remain unrecovered, according to the 2024/25 audited accounts. The fund has disbursed about Sh8.1 billion since its establishment in 2013, meaning a substantial portion remains outstanding.
Gathungu said some of the outstanding balances have remained unpaid for more than three years, making it difficult for auditors to confirm whether the money can ultimately be recovered.
The concerns go beyond delayed repayment. The audit identified weaknesses in documentation, loan approvals and follow-up mechanisms.
In some constituencies, individual loan accounts and beneficiary details were reportedly unavailable, while some groups received funds without sufficient evidence that required approval procedures had been followed.
That development raises fresh questions about the management of a fund designed to operate as a revolving facility. Money repaid by beneficiaries is expected to finance other groups, allowing the programme to continue supporting entrepreneurs across the country.
Earlier this year, Uwezo Fund officials reported that more than Sh8.1 billion had been disbursed to over 86,000 groups across all 290 constituencies, with the national repayment rate standing at 43 percent.
The latest audit therefore puts renewed attention on how public funds are tracked after disbursement and whether stronger recovery systems are needed.
For the government, the figures present an uncomfortable accountability challenge: billions intended to create opportunities remain tied up in outstanding loans, while questions persist over the systems responsible for recovering them.
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