SHINYANGA: SHINYANGA Municipal Council has dished out over 255m/- in loans to 19 special groups, with authorities issuing a strong warning against misuse of the funds.
Speaking during the loan disbursement process recently, Acting Municipal Director (DED), Mr Peres Kamugisha, emphasised that beneficiaries must utilise the funds strictly according to their submitted proposals. Defaulters, he warned, would face legal consequences, including losing future eligibility for financial support.
“These ten-percent loans are issued under the Local Government Finance Law, Article 290. Fund misallocation, including changing the proposed project, is an offence,” Mr Kamugisha stated.
He cited the example of 35 motorcycles distributed to youth groups, earmarked specifically for bodaboda (public transport) activities, saying any deviation from this intended use, he said, would not be tolerated.
The loans were granted to 11 women’s groups, seven youth groups, and one individual with a disability.
Mr Kamugisha noted that persons with disabilities are given special priority and may apply for loans individually.
He further encouraged all beneficiaries to repay their loans on time to allow more groups to benefit from the initiative.
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“The government’s goal is to empower its citizens economically, and that can only happen if the revolving fund is managed responsibly. Timely repayment is key,” he said.
The Municipal Loans Officer, Mr Nyanjura Kiyenze, echoed the warning, noting that preliminary investigations revealed instances of luxurious or inappropriate spending that yielded no returns.
He stressed that failure to repay loans violates core lending principles and leaves defaulters exposed to legal measures.
Supporting the call for accountability, Shinyanga District Commissioner, Mr Julius Mtatiro, urged borrowers to consult community development officers if they face challenges in implementing their projects.
He also discouraged starting multiple businesses with limited capital.
“Eventually, all investments stall midway. Focus on a single venture and expand only when it is sustainable,” he advised.
