Ilemela Municipality Distributes Sh1.13 Billion Loan to 60 Groups

Ilemela Council Disburses Sh1.13 Billion Loan to 60 Groups, Warns Against Misuse

In a significant move aimed at empowering local groups, Ilemela Municipality in Mwanza has disbursed a loan of Sh1.13 billion to 60 groups. The initiative, under a 10% funding scheme from the council's collections, is part of an ongoing effort to support women, youth, and special groups. While the loan is a substantial opportunity, the government has issued a stern warning against any misuse of the funds.

On Friday, February 28, 2025, the loan was officially handed over during a ceremony held at the Municipality's headquarters. The loan distribution is divided into specific categories: 4% for women, 4% for youth, and 2% for special groups.

Ummy Wayayu, the Director of the Ilemela Municipality, confirmed that 39 women’s groups, 17 youth groups, and 4 special groups will benefit from the loan. The groups had originally applied for funding under the 10% loan scheme, which attracted 148 applications—113 from women, 28 from youth, and 7 from special groups. Following a review, 80 groups did not meet the necessary criteria, including the absence of a recognized office or constitution.

In total, 39 women’s groups will receive Sh618 million, 17 youth groups will benefit from Sh492 million, and 4 special groups will be allocated Sh24 million. Another 32 groups that met the qualifications will receive funding in the next phase of disbursements.

Ilemela's Mayor, Renatus Mulunga, urged the beneficiaries to use the funds responsibly and for their intended purposes, stressing that failure to repay the loans would result in significant consequences. "Now that you’ve received the loans, do not look for excuses to fail in repayment. If you squander the funds, you will struggle to repay," Mulunga warned.

Mariam Msengi, the District Commissioner of Ilemela, also cautioned the recipients to cooperate with the experts monitoring the proper usage of the funds and to avoid attempts to bypass oversight.

On behalf of a special group, Yohana Matahe thanked the government for the opportunity, promising to use the funds to improve her life and that of her family. Jackson Taranga, representing the youth groups from Dira Photo Group, committed to utilizing the loan productively and repaying it on time.

Meanwhile, Spezia Alex called for regular monitoring by the government to ensure that the funds are used effectively, and to address any challenges that may arise during their utilization.