Minister Kasolo sets deadline for Emyooga defaulters

Soroti, Uganda | THE INDEPENDENT |  Haruna Kasolo Kyeyune, the State Minister for Microfinance, has issued a one-month ultimatum to all Emyooga defaulters in the Teso sub-region to repay their loans. He announced the ultimatum while concluding weeks of monitoring the progress of the Emyooga and Parish Development Model (PDM) programs in the Teso sub-region.

Minister Kasolo emphasized that the grace period previously granted to the initial beneficiaries of Emyooga funds for loan repayment has expired. During his visit, he observed that only two districts, Ngora and Serere, had achieved recoveries of over 65 percent of the Emyooga funds, while the rest were below 50 percent. Under the Emyooga program, beneficiaries are given one year to invest the funds before loan repayment, which commences in the second year.

These beneficiaries are expected to repay the entire amount with an interest rate of 0.6 percent at the end of the second year after borrowing Emyooga funds. The Minister has tasked the Resident District/City Commissioners with the responsibility of compiling a list of Emyooga defaulters within one week.

Teso sub-region received Shillings 24.6 Billion for Emyooga in the 2020/2021 financial year and an additional Shillings 48.6 Billion for PDM in the 2022/2023 financial year, according to Martin Akorikin, the State House Emyooga Coordinator for the Teso sub-region.

Akorikin revealed that while a substantial amount of money was disbursed to various Savings and Credit Cooperative Organizations (SACCOs) in Teso, certain targeted groups, including journalists, taxi operators, performing artists, and mechanics, declined to apply for the funds. Approximately Shillings 160 Million remains unutilized in banks due to the absence of SACCOs.

Emyooga, the Presidential Initiative on Wealth and Job Creation, was launched in 2019 as part of the government’s broader strategies to shift 39% of households from subsistence to market-oriented production. The Parish Development Model (PDM) was launched in 2022 to enhance service delivery and reduce poverty at the grassroots level.