7 Government officials suspended
The suspension of the seven comes two days after KNH boss Lily Koros was shown the door.
The suspension comes a time the fund was set to roll out a Sh1 billion this financial year compared to Sh352 million in the last financial year, even after the government mooted on consolidating the financial institutions. The Chairman, in a notice to suspend the seven, said that an audit report tabled on March 2, identified instances of irregular loan disbursement
Chairman Ronald Osumba, in a statement earlier, said that since the appointment of the new board in 2016, the fund has recorded an impressive increase in monthly loan uptake, from Sh20 million in 2016, to Sh100 million.
He also dismissed claims that the ongoing merger would disenfranchise those who are currently benefiting from the fund.
The government announced a plan to merge the Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.
The move is aimed at increasing efficiency, resolving overlaps and better utilise resources to achieve economies of scale. Osumba said the merger had been planned since Jubilee came into office in 2013.
Just last year, the board has re-engineered products and introduced new ones to serve special interest groups cultural and geographic diversity of the Kenyan youth.
“Notably, we have introduced loans for startups, agribusiness and for youth in the creative industry. We have also reduced group membership to five for youth interested in group loans.”
The fund will give bigger loans to businesses that seek to advance their loan portfolio. “We have further enhanced business expansion loans to Sh5 million,” he said.
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