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Authorities in Kanungu District are expressing concern over the low recovery of funds distributed to youth through the Youth Livelihood Programme (YLP), designed as a revolving fund.
Dabtious Tumusiime, the Kanungu district senior labour officer and focal person for the youth livelihood program stated that since 2014, over Shs1.4 billion has been disbursed to 169 youth groups in the district.
However, only approximately 300 million has been recovered thus far. Out of the 169 benefiting groups, only five have fully repaid their loans, leaving many struggling to meet their repayment obligations. Tumusiime initially considered resorting to the arrest of defaulting youth but, after consulting with the district chairperson, it was decided to prioritize mobilization and sensitization efforts to encourage repayment before resorting to legal action.
Eng Arineitwe Sam Kajojo, the district chairperson, attributes the sluggish repayment rate to inadequate project selection and weak formation of youth interest groups, emphasizing the need for more comprehensive training on program management. He highlights instances where youth were not adequately trained in project selection, leading to unprofitable ventures that hinder their ability to repay loans.
Kajojo urges all youth groups to take advantage of the grace period and commence repayment, as there are other groups awaiting funds once recovery is achieved.
While acknowledging the challenges, Kajojo appreciates the program’s efforts to recover funds and emphasizes the importance of sensitization over immediate punitive measures, recognizing that some individuals may have genuine reasons for non-payment.
