YLP: Over Shs 500mln unrecovered in Masindi Municipality

MASINDI, January 28, 2025 – Authorities in Masindi Municipality are still grappling with the recovery of Shs 534 million that was disbursed under the Youth Livelihood Programme [ YLP ], a government initiative run by the Ministry of Gender, Labour and Social Development.

Speaking at a rally on Saturday organised by Balaam Barugahara, the State Minister for Youth and Children Affairs, at Kibwona Catholic Parish, Winfred Masiko, the National Coordinator for the Joint programme for Youth Livelihood and Women Entrepreneurship, revealed that the recovery rate for YLP funds in Masindi Municipality currently stands at just 26 percent.

She explained that since the programme’s inception in 2014, a total of Shs 654mln had been disbursed, but only Shs 139mln had been recovered.

“We are still demanding Shs 534 million from the youth, and this money needs to be repaid so that other young people can benefit,” Masiko said.

Masiko also noted that the Uganda Women Entrepreneurship Programme [UWEP] in the municipality was performing better than the YLP, with a recovery rate of 53 percent. She commended the women for their efforts, urging groups that have yet to repay to do so in order to allow other women to benefit.

“Under UWEP, we have disbursed Shs 332mln, and Shs 137mln has been recovered. I want to thank the women for their efforts in repaying the money, unlike the youth. Those who received the funds should ensure they pay back so others can access the money,” Masiko said.

She explained that Minister Barugahara had invited her to Masindi to provide an update on the performance of the two programmes, highlighting that many groups had yet to repay the loans.

“I am calling on the beneficiaries to learn how to manage the money so they can fight poverty effectively. Don’t just use it for subsistence; this programme was introduced to help you combat household poverty,” she advised.

Some defaulters had previously appealed to Minister Barugahara to urge the government to consider writing off the loans, citing the adverse impact of COVID-19 on their businesses.

In response, Masiko stated that such a move was not feasible, as it would set a negative precedent. However, Barugahara promised to raise the issue of writing off the loans with the Cabinet to explore possible solutions.

“I will take this matter forward to see if there is a way we can support them,” Barugahara assured.

Solomon Asiimwe, the LCIII Chairperson of Karujubu Division, confirmed that many groups in his sub-county had not yet cleared their loans and pledged to reach out to them in an effort to encourage repayments.

The YLP is a Government of Uganda-financed initiative aimed at addressing the high unemployment rate and poverty among the youth. The programme operates in all districts and cities, including Kampala Capital City Authority [KCCA].

Under the programme, youth groups can access up to Shs 25mln, with Shs 12.5mln approved at the local government level. The programme provides opportunities for youth to create both direct and indirect jobs, access financial services, enhance asset accumulation, improve their lifestyles and behaviours, expand the tax base, reduce dependency, and support value-added projects using locally available materials.

As of 30 June 2019, the Ministry of Finance had disbursed a total of Shs 160,238,246,586 to 20,159 projects, benefitting 241,799 youth, 46 percent of whom were female.

https://thecooperator.news/ylp-funds-in-lira-city-to-go-to-active-groups-only/

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