The national government intends to pursue millions of Kenyans who are yet to service their loans sourced from the Hustler Fund. Co-operatives and MSME Development Cabinet Secretary Wycliffe Oparanya observed that over 19 million Kenyans had defaulted on the state facility.....CLICK HERE TO READ THE FULL ARTICLE>>>
The digital fund launched in 2022 by President William Ruto was aimed at improving access to responsible financing for individuals, micro, small, and medium-sized enterprises in Kenya.
Kenyans would get loans up to KSh 1 million with an interest rate of 7% per annum on a reducing balance basis. Since the facility’s inception, 21 million Kenyans have applied to it, but according to the CS, only 2 million have repaid.
“The Hustler Fund was very innovative, digital, but the problem we have had with it is that in the first round, 21 million people browed money. Out of the 21 million, 19 million disappeared with the money. Only two million people are borrowing regularly,” said Oparanya.
He observed that the Hustler Fund debt recycling was at its worst, thus the need for government intervention. The CS was speaking during the launch of the Inaugural Annual SME Conference, Awards and Exhibition in Nairobi.
“This is public money which should be borrowed and repaid so that other people benefit from it. For those 19 million, I am coming for you to make sure that you pay so that others can benefit,” he stated.
Going forward, Oparanya said, the government would devise a mechanism to digitally track the loanees and trace them to their locations in the event they default.
“We are coming up with a system that will now track you and know where you are. You will see someone knocking,” the CS added.
In June, Auditor General Nancy Gathungu exposed the government for lending KSh 464.7 million to unregistered Hustler Fund borrowers.
Gathungu revealed that over 800,000 Kenyans received loans from the facility despite not registering for it. The auditor noted the unregistered borrowers received the funds within the first seven months of Hustler Fund operation…CONTINUE READING>>
