Cooperative and MSMEs Cabinet Secretary Wycliffe Oparanya has unveiled plans to implement a digital system aimed at improving the management of the Uwezo Fund.
Oparanya revealed that the introduction of a digital system will address issues of multiple borrowings and improve the tracking of defaulters. Additionally, a dedicated unit will be set up to recover the 58% of funds that are still pending repayment.
“To ensure its efficiency, we will work on introducing a digital system to prevent multiple borrowings, enhance tracking of defaulters, and establish a dedicated unit to recover the 58% of funds that are yet to be repaid,” he added.
Oparanya meets Uwezo Fund board
Oparanya made the announcement following a meeting with the Uwezo Fund board members, where he was briefed on the fund’s structure and loan products.
The newly appointed CS emphasized that the focus of the meeting was to bolster effectiveness and transparency within the Uwezo funding program to better serve Kenyans at the bottom of the economic pyramid.
“I was briefed by the Uwezo Fund board members on their structure and loan product. The meeting centred on enhancing effectiveness and transparency in the Uwezo funding program to meet the needs of Kenyans at the bottom of the economic pyramid,” Oparanya stated.
The Uwezo Fund, established in 2013, aims to empower youth, women, and persons with disabilities by providing access to interest-free loans to support the initiation or expansion of businesses. It was created to combat unemployment and poverty among these marginalized groups.
“Uwezo Fund has supported thousands of businesses across Kenya, especially in rural and underserved areas. It has empowered many beneficiaries by providing capital to start or grow their businesses, fostering entrepreneurship, and improving the standards of living. The fund is a critical enabler for the #MSME sector for it contributes in reducing unemployment and promoting inclusive economic development which aligns with the Bottom-Up Economic Transformation Agenda,” he concluded.
