NEEF To Recover Loans From Deceased
Published on March 2, 2026 at 10:34 AM by Evance Kapito
The National Economic Empowerment Fund (NEEF) has announced that it is moving to recover outstanding loans from borrowers who passed away before settling their debts by holding guarantors and collateral accountable.
NEEF Public Relations Officer, Elizabeth Mapemba, said that for deceased clients who were consistently making repayments, the institution is utilizing insurance cover to settle the remaining balances. However, for those with defaulted accounts, the fund is now targeting the individuals who stood as witnesses or the assets pledged as security.
The recovery drive comes amid staggering figures showing a massive gap in repayments. According to Mapemba, out of the K335 billion disbursed to Malawians between 2021 and 2025, a total of K240 billion remains unpaid.
The Centre for Social Accountability and Transparency (CSAT) has weighed in on the crisis, with Executive Director Willy Kambwandira attributing the poor recovery rate to political interference. Kambwandira argued that political influence has compromised the fund’s integrity and called for the enactment of stricter laws to penalize those who fail to honor their loan obligations.
