Three years on, Nebbi women struggle to repay UWEP and YLP loans
Municipal Council records show that most groups that received funds between 2021 and 2022 have either defaulted or made only partial repayments, leaving the recovery rate below 35 percent of the total disbursed funds
NEBBI, April 21, 2026 — Three years after receiving start-up capital under the Uganda Women Entrepreneurship Programme [ UWEP ] and the Youth Livelihood Programme [YLP], many women and youth groups in Nebbi Municipality are still struggling to repay their loans.
Municipal Council records show that most groups that received funds between 2021 and 2022 have either defaulted or made only partial repayments, leaving the recovery rate below 35 percent of the total disbursed funds.
It is imperative to note that, out of Shs 187 million that was disbursed to different groups’ accounts in Nebbi Municipality, only Shs 65mln has been recovered against the government’s target of 70 per cent on the revolving funds. This means many beneficiaries are holding onto the money rather than paying it back.
According to beneficiaries of UWEP, a combination of crop failure and unstable market prices during the COVID-19 pandemic wiped out profits in the first year, posing significant challenges to loan repayment.
Beatrice Kintho, the Chairperson of Kwolonyo UWEP Group in Nebbi Main Market, said many funded groups no longer exist and their contacts are unavailable for follow-up on the group’s money.
“In most cases, group members are affected by corruption tendencies and internal conflicts among leaders, making recovery of UWEP loans difficult. Some beneficiaries also lack business skills and end up using the money for consumption instead of the intended enterprises,” Kintho said.
She added that in 2017, her group received Shs 5mln under UWEP for produce buying and selling, but the funds proved insufficient for the 10 group members to run a competitive business. She noted that as members became scattered, it became difficult for the remaining few to raise the balance of Shs 120,000 required to apply for additional funding, especially after some members abandoned their businesses for farming in Nwoya District.
As of 15 July 2025, Nebbi Municipal Council had recovered only Shs 130mln, representing 28 per cent of the Shs 459mln disbursed under the YLP programme. The Municipality has recovered a total of Shs 62mln, representing 19 per cent of the total disbursed funds.
Leaders say the biggest challenge facing UWEP and YLP is the low recovery rate of disbursed funds, with many loans not fully repaid.
Ngiriker Geoffrey, the Mayor of Nebbi Municipality, advised women and youth groups to focus on productive activities that add value to their businesses rather than expending energy on local politics shaped by negative mindsets.
While handing over Shs 58mln to five groups under an initiative of the Ministry of Gender, Labour and Social Development to support women and youth groups, Ngiriker urged beneficiaries to desist from negative attitudes towards government programmes aimed at eradicating poverty and improving livelihoods.
He added that UWEP and YLP were designed as revolving funds, but weak follow-up mechanisms and negative political messaging have hindered their effectiveness, with some beneficiaries treating the funds as handouts.
“It is quite challenging at the lower local government level because the government stopped remitting operational funds to districts. Without facilitation, officials cannot trace groups, sensitise members, or enforce recovery given the terrain and locations of beneficiaries,” Ngiriker said.
Ms Grace Amia, the Principle Community Development Officer, Nebbi Municipality, implored women and youth groups to embrace skilling programmes and adopt result-oriented enterprises to drive socio-economic transformation and improve profitability for loan repayment.
“People have a poor attitude towards UWEP and YLP funds. Some group leaders embezzle or divert the money to personal activities and then deliberately refuse to pay it back,” Amia said.
Amia said that out of Shs 58mln allocated to five women’s groups and two youth groups under UWEP and YLP, respectively, the five women’s groups will receive Shs 43mln, while the two youth groups will share Shs 14mln as start-up capital to boost their businesses.
The Deputy Town Clerk, Vivien Chota, urged beneficiaries to use the funds prudently to eradicate poverty, noting that the government’s affirmative action is aimed at improving household incomes and promoting wealth creation.
“I want to assure you, the beneficiaries of UWEP and YLP, that the money the government is providing for projects to eradicate poverty in communities is not meant for buying luxury items, but for business. It is a revolving fund that must be repaid for other groups to benefit,” Chota said.
UWEP was launched by the Government of Uganda around the 2015/16 financial year and is implemented under the Ministry of Gender, Labour and Social Development [MGLSD]. Its core aim is to increase women’s incomes and improve their participation in economic development.
On the other hand, YLP, also implemented by the MGLSD, was launched in 2014. It operates across all districts in Uganda and is funded mainly by the government. The core goal is to: Empower youth economically; increase self-employment opportunities; and improve income levels and livelihoods.
https://thecooperator.news/uwep-hoima-district-fails-to-recover-shs-650mln-from-women/
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