Hustler Fund Chief Executive Officer, Henry Tanui, now says the fund is exploring new mechanisms to recover outstanding loans amounting to Ksh12 billion.
Appearing before the National Assembly’s Special Funds Accounts Committee on March 5, Tanui said the new recovery approach will involve using borrowers’ National ID and location data to track defaulters.
“The people who borrowed and thought they can disappear, they can’t because their IDs are linked to the loans,” Tanui said.
“Except for those who have passed on, we will collect the money.”
The CEO revealed that the fund has secured approval from the Office of the Data Protection Commissioner to access records for about twenty million registrants.
The move is aimed at strengthening monitoring and preventing borrowers from evading repayment by changing phone numbers or discarding SIM cards.
The strategy will be considered vital for improving follow-up on unpaid loans.
Hustler Fund Targets Defaulters Using National ID to Recover Ksh12 Billion
The revelation came as Members of Parliament (MPs) expressed concern over the use of public funds and the repayment discipline of the Hustler Fund, noting that a programme designed to expand credit access for ordinary Kenyans still has about Ksh12 billion yet to be recovered.
Lawmakers stated that this shortfall is not just a figure on paper, but it represents public money that must be carefully tracked, accounted for, and protected.
They stressed that every shilling from the Hustler Fund must serve its intended purpose, ensuring that initiatives aimed at empowering citizens function effectively.
The Committee indicated it will remain vigilant, demanding detailed explanations on governance, borrower tracking, and measures to prevent losses.
While MPs welcomed the steps already taken, they underscored the need for a clear and enforceable plan immediately, warning that delays could widen gaps and weaken public confidence in the scheme.
Also Read: Why 26 Million Kenyans Won’t Stop Borrowing from Hustler Fund
How Loans Were Borrowed
Tanui reported that as of March 5, Ksh83 billion had been borrowed, with Ksh71 billion already repaid and Ksh5.3 billion saved.
He noted that the fund’s default rate currently stands at 15 percent.
Tanui stated that Nairobi has the highest number of borrowers, followed by Kiambu County.
In response to concerns about harsh debt recovery measures, he said that the fund will avoid aggressive tactics and instead focus on educating borrowers about the importance of timely repayment.
Also Read: Ruto Explains How Eldoret Shylock Inspired Hustler Fund
Gov’t on Denying 9 Million Hustler Fund Defaulters SHA Lipa Pole Pole Services
In September 2025, the government announced that nine million Kenyans were likely to be barred from accessing the Social Health Authority (SHA) Lipa Pole Pole credit programme and other state-backed financing facilities.
Principal Secretary for Micro, Small and Medium Enterprises Development, Susan Mang’eni, said the measure targeted Kenyans who defaulted on Hustler Fund loans.
She further specified that the measure would affect borrowers who have deliberately failed to repay loans issued three years ago, adding that such defaulters deny others an opportunity to use the facility.
“If you do not pay back, then you are denying others an opportunity to use the facility. You are categorised as criminals,” she stated.
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