Records on loans worth Sh3.9 billion disbursed through the State-backed Uwezo Fund are no where to be seen.
This new development makes it difficult to account for millions set aside for small enterprises loans.
Edward Ouko says that a review of the Fund’s operation for year to June, 2018, indicate there are no documents of the loans issued or groups that had made away with the credit
The auditor general in his report also adds that there were also no debtors’ ledgers detailing loans issued since inception and repayments made over the years on account of any loans recovery.
“There were also no comprehensive loan listings and or aging analysis in support of outstanding loans,” Mr Ouko said.
“Consequently, the accuracy, completeness, validity and recoverability of the unsupported and unaccounted for loans to group balance of Sh3,920,225,398 cannot be confirmed,” reads the audit report.
Social protection departments earlier said 60 percent of the groups are yet to pay back the money to enable other deserving groups get access to the revolving fund.
The financial irregularities at Uwezo Fund comes as the State prepares to merge it with the Youth Enterprise Development Fund and Women Enterprise Fund to form Biashara Kenya Fund.
