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The launch of the Sh50 billion Hustler Fund may have increased the appetite for loans but the need to deepen repayments from similar government utilities in Kenya is gaining traction.

Uwezo Fund committees across the country will be required to vigorously train beneficiary groups on best business practices before allocating and disbursing the government fund. The move is aimed at ensuring timely repayment of the loans to ensure growth and sustainability of the fund.

Speaking in Athi River during the disbursement of cheques worth Sh4.9 million to 60 groups, Uwezo Fund CEO Peter Lengapiani said repayment rate nationally currently stands below average, at 40 per cent. He said since inception of the Fund in 2013, beneficiaries have only repaid about Sh2.5 billion out of the total Sh7.2 billion issued.

“Training the fund beneficiaries is key. Some are yet to repay the money due to lack of skills and knowledge of managing business. To attain profitability of business discipline, accountability and book keeping are important factors members should know and embrace to make a joint business profitable,” said Lengapiani.

“Training beneficiaries on the need of repaying the money to qualify for higher amounts is equally important,” he added.