Uwezo Fund: Requirements, Loan Products, Constituencies and Contacts

In pursuit of Kenya's Vision 2030 and the Sustainable Development Goals, the Uwezo Fund is a beacon of empowerment for women, youth, and persons with disabilities. This flagship program was established to facilitate financial access and promote businesses at the constituency level, contributing to economic growth while eradicating poverty and promoting gender equality. With its bottom-up approach and impressive uptake, the Uwezo Fund has disbursed over Kshs 7.2 billion and directly supported over 1 million beneficiaries. This article dives deep into the Uwezo Fund, its loan products, eligibility criteria, application process, and its impact on various sectors.

Key Takeaways

1. The Uwezo Fund empowers women, youth, and persons with disabilities by providing access to affordable credit and capacity-building opportunities.
2. The Fund was established to promote economic growth, eradicate extreme poverty, and empower women as per Kenya's Vision 2030 and SDGs.
3. Uwezo Fund operates under guiding principles of accessibility, economy, accountability, and representation to ensure effective distribution.
4. Loan products include the Wezesha Loan for first-time borrowers and the Endeleza Loan for repeat borrowers, fostering enterprise growth and development.

The Uwezo Fund: What Is It?

The Uwezo Fund, established through Legal Notice No. 21 of 21st February 2014, aims to empower marginalized groups by expanding access to finance. This government initiative enables beneficiaries to initiate and expand their enterprises, catalyzing equitable socio-economic transformation. With a strong emphasis on community-driven development, the Fund operates at the grassroots level within constituencies, allowing for decision-making that reflects the unique needs of each community.

Loan Products and Eligibility

The Uwezo Fund offers two primary loan products to eligible groups—Wezesha Loan and Endeleza Loan. The Wezesha Loan caters to first-time borrowers, while the Endeleza Loan serves repeat borrowers seeking subsequent funding.

Wezesha Loan

The Wezesha Loan provides first-time borrowers financing to kickstart their projects and enterprises. Eligible groups, comprising women, youth, and persons with disabilities, can access loans ranging from Kshs. 50,000 to Kshs. 100,000. The application process requires groups to be registered, have a designated membership composition, and submit requisite documents to the Constituency Uwezo Fund Management Committee. Repayment occurs within 12 months, following a six-month grace period, enabling borrowers to manage their financial commitments.

Endeleza Loan

Repeat borrowers can benefit from the Endeleza Loan, offering incremental funding based on the initial loan amount. This loan can range between 150% and 200% of the original loan, up to a maximum of Kshs. 500,000. As a reflection of sustainable growth, eligibility for the Endeleza Loan involves demonstrating proper utilization of the Wezesha Loan and the potential for job creation and expansion. Similar to the Wezesha Loan, eligible groups must be registered and meet specific membership criteria, while repayment terms extend over some time.

Uwezo Fund Individual Loan

The Uwezo Fund individual loan allows eligible individuals to access financial assistance. Aimed at youth, women, and people with disabilities, this loan serves various purposes, including expanding existing businesses, starting new ventures, funding education fees, promoting agricultural activities, and supporting income-generating projects. The guidelines and eligibility for this individual loan are as follows:

1. The applicant must be a Kenyan citizen aged between 18 and 35 years.
2. The applicant must demonstrate the ability to repay the loan within two years.
3. No criminal record in the last six months before application.
4. No outstanding Uwezo Fund loan.
5. The applicant must be within the country during the application period.
6. The applicant must utilize the loan for legitimate and legal purposes.

Application Process:  How To Apply

To access Uwezo Fund loans, groups must follow a structured application process, including filling out the Uwezo Fund Loan application form and submitting requisite attachments. Successful applicants await approval statuses from the Constituency Uwezo Fund Management Committee. Notably, the Uwezo Fund has contributed significantly to various sectors, with agricultural activities and trade emerging as the predominant choices among beneficiaries. Through these endeavors, the Fund has facilitated economic growth, employment creation, and improved living standards.

 Constituencies Benefiting from Uwezo Funds

The Uwezo Fund has significantly impacted various constituencies across Kenya, fostering economic growth and empowerment. Groups have ventured into agriculture, trade, services, and manufacturing, contributing to food security, affordable housing, and job creation. Examples include the Sengeteti Focal Women Group engaging in sweet potato cultivation and value addition and Rwayambu Self-Help Group's garment material and dress sales.

In addition, all the Constituencies have access to Uwezo Fund In Kenya:

Uwezo Fund Contact Details

For further details, you can Contact Uwezo Fund Customer Service via;

• Lonrho House, 16th Floor, Standard St.
• P. O. Box 42009 – 00100, Nairobi
• Call: +254 020 2210557
• [email protected]
• [email protected]
• [email protected]
• [email protected]
• [email protected]
• https://www.uwezo.go.ke

READ ALSO: M-Kopa Paybill Number: How to Pay for Your M-Kopa Products Via M-Pesa

Conclusion

The Uwezo Fund is a cornerstone of empowerment in Kenya, promoting economic growth, gender equality, and poverty eradication. Its Wezesha and Endeleza loan products empower women, youth, and persons with disabilities to embark on entrepreneurial journeys that contribute to their well-being and communities. By adhering to its guiding principles and ensuring equitable distribution, the Uwezo Fund drives positive change, fostering a brighter future for Kenya's marginalized populations.

Frequently Asked Questions (FAQs)

Q. How does one apply for the Fund?

Answer

Meet the eligibility criteria, get an application form from NGCDF or the Sub-County Youth Development Officer's office, fill out the form, and return it to the office with all the requirements.

You can also access the loan application form from our website www.uwezo.go.ke .

Q. Of what importance is the Capacity building program, and who will run it?

Answer

Capacity building aims to train the fund beneficiaries on General information about the Uwezo Fund, Business Development Services, mentoring Table Banking, and Access to Government Procurement Opportunities.

• To create awareness of the Uwezo Fund.
• To facilitate youth, women, and PWDS to form businesses.
• To enhance youth, women, and PWDS entrepreneurship capacity.
• To facilitate fund beneficiaries to access government procurement opportunities.
• To link youth, women, and PWDs owned enterprises with corporate businesses and form forward market linkages for collaboration and support

The Constituencies Uwezo Fund Management Committee Secretariat will run the Capacity Building Programme.

Q. Who is in charge of the Fund at the Constituency level?

Answer

The Area Member of Parliament is the Patron at the Constituency Level. The Constituency Uwezo Fund Management Committees are mandated with the overall management and design of the Fund at the constituency level.

Q. What criteria will determine whether a group qualifies for the Fund?

Answer

(a)For a group—

(i) Is registered with the Department of social services, Cooperatives, or the Registrar of Societies

(ii) Has members aged between 18 and 35 years, whereas the women's and PWDs groups shall comprise women and PWDs aged eighteen years and above.

NB: Youth groups with members above 35 years are eligible as long as the group is 70% youth and 30% others, 100% youth leadership; the same applies to the women and PWD groups, i.e., 70% women and others 30%, 100% women leadership; 70% PWD and 30% others and 100% PWD leadership

(iii) Is based and operational at the constituency it seeks to make an application for consideration

(iv) Operates a table banking structure or any other group fund structure where members make monthly contributions according to the groups' internal guidelines (evidence of monthly contributions shall be a requirement)

(v) Hold a bank account in the name of the group.

(b) For an institution—

(i) Is a registered entity

(ii) Has listed youth and women groups within it

Q. Is there a deadline for the Uwezo Fund application?

Answer

There is no deadline; it is a revolving fund.

Q. What is the interest incurred on the loan?

Answer

The loan does not attract interest

Q. What is its repayment period?

Answer

Six months grace period and two years from the expiry of the grace period

Q. The group should be made up of how many members?

Answer

There is no maximum number of members in a group

Q. How long should the group have existed for it to qualify for the Fund?

Answer

There is no minimum required period of group existence as long as the group is practicing table banking and has evidence of monthly contribution.

Q. Can I apply for the Fund as an individual?

Answer

No, the Fund is only accessible to the groups

Q. How long does it take for the groups to get their funding after applying?

Answer

The groups will get funding after Constituency Uwezo Fund Management Committees have done the vetting of their applications. Later the groups will be trained on four focus areas and get funding for their projects. The turn-around time once the applications reach Board is one month.

Q. What measures are you taking to ensure transparency of the Fund so that it doesn't fail like any other fund?

Answer

At constituency offices, the forms are serialized for accountability purposes.

The beneficiary groups are displayed at the NGCDF or Sub-County offices, and disbursement of funds/loans is held in public forums.

Q. What key areas are you focusing on to improve the Fund's performance

Answer

The Board has developed a five-year strategic plan (2019-2023). The key result areas the Fund will focus on are;

1. Fund management and resource mobilization
2. Awareness creation and public education
3. Leadership and governance
4. Strengthening institutional capacity and infrastructure
5. Monitoring and Evaluation

Disclaimer

This article overviews the Uwezo Fund, its loan products, eligibility criteria, and application process. Readers are encouraged to refer to official Uwezo Fund documentation and guidelines for accurate and up-to-date information regarding loan terms, eligibility, and application procedures.