GOVERNMENT has given Kasempa District in North-Western Province K3.2 million for micro-finance loans disbursement to civil servants in the area.

Kasempa District Commissioner Victor Kayekesi confirmed the received allocation which was being disbursed by the Public Service Micro-Finance Company.

This is under a newly-launched scheme by the Ministry of Finance aimed at giving civil servants access to micro-finance loans.

Mr Kayekesi said the district received the allocation last week and that civil servants, who had applied for micro-finance loans had already started accessing the funds.

"The Ministry of Finance, through the Public Service Micro-Finance Company, is disbursing loans to civil servants and Kasempa was fortunate to be picked as a pilot district for that.

"Already, the district has received more than K3.2 million for micro-finance loans which civil servants have started accessing," Mr Kayekesi said.

Mr Kayekesi said the micro-finance loans, which were being given at an interest rate of five per cent had given civil servants a better option for source of money.

"The interest rate on these micro-finance funds is favourable and civil servants are happy with the loans because for a long time now, they have been enslaved by these money-lending institutions that charge high interest rates," Mr Kayekesi said.

He said with this micro-finance scheme in place, civil servants in Kasempa were already appreciating the Government decision to remove subsidies on maize and fuel.

"The people of Kasempa are happy that the removal of subsidies has become a practical thing in Kasempa because they have started seeing reaching a cross section of society" he said.