Hoima district authorities step up efforts to recover Shs 1.202bln in YLP funds
HOIMA CITY, November 5, 2026 – Authorities in Hoima district have stepped up efforts to recover Shs 1.202 billion in outstanding funds disbursed to youth groups under the Youth Livelihood Programme [YLP], amid concerns that widespread defaulting is limiting access to the revolving fund.
Joyce Kabatarya, the Hoima District Community Development Officer and YLP Focal Person, said several youth groups that received funding to establish income-generating enterprises and create jobs had failed to repay the money.
She said that since the programme was introduced in 2014, Hoima district had received Shs 1.535bln, which was disbursed to 178 youth groups. However, only Shs 333 million had so far been recovered.
Kabatarya attributed the poor recovery to several factors, including claims by beneficiaries that their businesses had been affected by the COVID-19 pandemic and climate change, particularly among those engaged in farming.
She said the district was struggling to recover the outstanding Shs 1.202bln from defaulting groups.
“This is a huge amount of money in the hands of the youth. This challenge has forced the central government to reduce the money it allocates to the district under YLP. For example, from the 2015/2016 to 2017/2018 financial years, our district could receive between Shs 260mln and Shs 318mln, but in 2025, we received only Shs 25mln. This is because of the youth groups that have defaulted,” she said.
Kabatarya explained that YLP funds were intended to operate as a revolving fund, with beneficiaries required to repay the money so that other young people could also benefit.
“The President initiated this programme to assist the youth with financial support in the form of revolving seed capital for beneficiaries to take, use and pay back, giving other young people a chance to benefit. However, many have vehemently refused to return the money because they misinterpret the funds as political tokens or presidential hand-outs,” she said.
She said the district had engaged beneficiary groups several times to encourage repayment but warned that authorities were considering enforcement measures, including arresting defaulters.
Kabatarya added that the Parliamentary Accounts Committee had also tasked the district with explaining why beneficiaries were failing to repay the funds.
Speaking at a stakeholders’ meeting recently convened in Buraru Subcounty to develop strategies for recovering the outstanding funds, Hoima District Vice-Chairperson Fridah Kabagahya blamed the poor recovery rate on the mismanagement of funds by beneficiaries.
She said some young people who received the money had failed to invest it in the enterprises they had proposed in their applications, instead diverting it to other ventures that were not profitable.
However, Kabagahya called for concerted efforts by local leaders and other stakeholders to engage beneficiaries and ensure they repay the money, which is intended to help young people escape poverty.
Hoima Chief Administrative Officer Sarah Nakalungi urged beneficiaries to revive their group enterprises, embrace teamwork and develop a culture of saving to support the government’s broader agenda of socio-economic transformation, job creation and improved household incomes.
She also encouraged the youth to take advantage of the favourable climate and fertile soils in the district to venture into commercial agriculture.
Meanwhile, Robert Kajura, the Hoima District Youth Council Chairperson, said Shs 122mln had been disbursed to 14 youth groups undertaking various enterprises in Buraru Subcounty.
However, he said less than Shs 13mln had been recovered from the groups since the 2014/2015 financial year.
https://thecooperator.news/ylp-over-shs-500mln-unrecovered-in-masindi-municipality/
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