Government To Track Down 19 Million Kenyans Who Defaulted On Hustler Fund: "They Disappeared"

• Co-operatives Cabinet Secretary Wycliffe Oparanya has noted that the Hustler Fund debt recycling has been at its worst since the state facility was launched
• The CS observed that over 19 million Kenyans were yet to repay their loans, hinting at measures to claim the monies back
• Oparanya revealed a digital system would be devised to keep the loanees in check and track down the defaulters

Kai Eli, a journalist at TUKO.co.ke, brings more than three years of experience covering politics and current affairs in Kenya.

Nairobi — 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.

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.

How many Kenyans borrowed from Hustler Fund?

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.

How Hustler Fund defaulters will be caught

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.

Auditor General's exposé on Hustler Fund

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.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke

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Co-operatives CS Wycliffe Oparanya.

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