By Rogan Labika,
The Ministry of Local Government and Rural Development has revealed a low recovery rate for loans disbursed under the Constituency Development Fund (CDF) with only 34 percent of funds recovered between 2022 and 2025.
Acting Minister of Local Government, Felix Mutati informed Parliament that several factors contributed to the high default rate among beneficiaries including the lack of necessary business expertise to manage the funds effectively.
However, Mr. Mutati revealed that government is engaging affected beneficiaries on a case-by-case basis to renegotiate and agree upon sustainable repayment terms.
He further said, in order to prevent further losses and improve the program’s efficiency, the government is currently reviewing the 2022 CDF guidelines on the empowerment component to ensure better utilization of funds and improved performance for future recipients.
Previously, government had suspended the disbursement of CDF loans due to the high number of defaulters.
