The government has blacklisted Tana River County for defaulting on payment of Kshs 58 million from the Uwezo Fund.
Public Service, Youth and Gender Affairs Principal Secretary, Safina Kwekwe, revealed that residents had borrowed Kshs 58 million in the last five years but had repaid only Kshs 1 million.
The trend was replicated in the Youth Enterprise kitty, whose Kshs 14 million borrowed in the last 11 years, has not been repaid.
The county won’t benefit from Uwezo Fund following the mass default.
"It is shameful for you to take these funds and fail to pay so that they can help other people.
"You are supposed to repay so that another person can borrow. Other counties are moving forward, but in Tana River, we are not making progress because some of you are holding others hostage," the PS remarked.
She stated the trend had crippled development in the county, adding that the situation could affect other funding organisations and the relationship between residents and financial institutions.
She was speaking at a public forum in Hola, Tana River County.
Kwekwe urged the youths to pay up and apply for more loans so that they could build an enterprising society.
"Borrowing in Tana River is still too low, we still are giving Sh6 million here, while Kilifi the youth are at Sh13 million and in Mombasa Sh20 million, and they are paying up,” Kwekwe stated.
