Kampala youth funds ready for distribution

Kampala Capital City Authority (KCCA) has finally resolved to give out the job stimulus package worth Shs 3.3bn to the qualified youth groups. At the end of the financial year, KCCA sent the package to Centenary Bank so that it is not returned to the national treasury.

Once a financial year closes and some money is not used, the practice is to return it to the national coffers. Still, the youth lost Shs 760m meant for the Komamboga Fish Pond in Kawempe division. By the close of the financial year, no project proposal had been approved.

Last financial year, government allocated Shs 44bn to the youth nationwide. Of this, Kampala, designated as a special area, was allocated Shs 16.5bn but the city ended up getting 9.9bn.

But because KCCA had opted to distribute the money through microfinance institutions, government stopped the exercise when only 42 groups had benefitted of the projected 392.

In a meeting on Tuesday, the Authority resolved to resume the fund distribution through the micro finance institutions. These institutions will set a new mode of distribution which the Authority hopes will be more friendly compared to the commercial banks. The banks were charging a 15 percent interest.

The remaining youth groups to benefit through a demand driven system include 108 from Makindye, 105 from Rubaga division, 102 from Nakawa division, 90 from Kawempe division and 87 from Central division.

Several disgruntled youth have been demonstrating at city hall demanding that the money is given out. At the end of Tuesday’s meeting, many were happy with KCCA’s decision and they hoped government would not oppose the new arrangement. The beneficiaries will be announced next Wednesday.
Source Observer
slubwama@observer.ug