The State Minister for Microfinance, Haruna Kyeyune Kasolo, has given Emyooga loan defaulters in Bukedea district a 30-day extension to repay their outstanding loans. This decision was made due to the low recovery rate of only 5% since the program’s launch in 2021.
Bukedea district received a total of shs550 million, which was distributed among 17 Emyooga SACCOs. So far, shs483 million has been disbursed to 624 members, as reported by the district commercial officer, Godfrey Otim.
Minister Kasolo, who is currently in Teso to monitor the Emyooga program’s progress, expressed disappointment in the poor loan recovery. Out of the shs483 million disbursed to members, only shs27 million has been repaid.
President’s directive initially stated that beneficiaries should repay Emyooga funds within 24 months to allow others to borrow. However, many have exceeded this repayment timeline, as observed by Minister Kasolo.
The district commercial officer of Bukedea explained that many beneficiaries diverted the funds for personal consumption instead of investing them in business, as intended by the program.
SACCO chairpersons requested a 30-day extension from the minister to facilitate the recovery of funds from their members, which was granted by Kasolo, who noted, “Since this is the speaker’s district and the speaker is my boss, let me give you one month. I want this money to come back to the SACCO so that another person can come for it, and also utilize it. It is supposed to be a revolving fund.”
Minister Kasolo also cautioned Emyooga beneficiaries against accessing PDM (Presidential Development Model) funds, emphasizing that these two programs target different categories of people and that it is considered a criminal act to misuse them interchangeably.
Kasolo plans to continue his tour of the sub-region to educate the community on the benefits of saving and promote a change in mindset.
The Emyooga program is designed to eradicate poverty and serves 19 categories of beneficiaries engaged in various enterprises, including boda boda riders, market vendors, carpenters, performing artists, salon operators, tailors, among others.
