Kenyans Who Refused to Pay Hustler Fund Loans to be ‘Forgiven’

Kenyans who are Hustler Fund  loan defaulters can now breathe a sigh of relief after the government announced its intention to write off Ksh 6 billion in debt owed to them by the defaulters.

While appearing before the National Assembly committee on Industry Trade and Cooperatives, Micro, Small and Medium Enterprises Development Principal Secretary Susan Mag’eni stated that the government will write off the bad loans taken by 10 million Kenyans in 2022.

According to the PS, the Hustler loan fund incurred a debt of Ksh 6 billion from 10 million Kenyans who borrowed it at the time of its launch in 2022.

“They never repaid, and that is what we will be seeking to write off, so the portfolio that is totally at risk and is in default is about between Ksh.5 billion and Ksh.6 billion,” the PS said.

Hustler Fund Loan Defaulters to Be ‘Forgiven’

Members of parliament belonging to the trade committee, led by Starehe Legislator Amos Mwago, questioned why the PS’s docket was unable to facilitate the payment of the Ksh 6 billion debt. The committee members further remarked that the Hustler fund project could plunge the government into deeper loans .

“At this rate, I think you’re going to dive into something else. We cannot afford to be writing Ksh.6 billion for you,” said Starehe MP Amos Mwago. 

Also Read: Hustler Fund Declares CEO Position Vacant; How to Apply

In her defense, Mag’eni stated that the ministry is considering amendments to allow for the forceful payment of unrecovered loans.

“Since we have graded these people, we are going to institute a mechanism of recovery through incentives and certain sanctions, thereby blocking you from accessing other enhanced opportunities. If we were to do forceful recovery, another challenge will be the law. So we are also looking at what point we can introduce forceful recovery,” said the PS.

About the Fund

At the same time, the  PS sought approval for a Ksh 5 billion allocation to the fund in the current financial year. She defended the fund’s performance, noting that 9 million borrowers remain active, and called on MPs to support the proposal.

The Hustler Fund is a type of  transformative initiative launched by the Kenyan government to empower micro, small, and medium enterprises (MSMEs) by providing them with accessible financial support. Launched by President William Ruto in November 2022, the fund aims to foster financial inclusion and stimulate economic growth among the country’s entrepreneurial community.

Also Read: Ruto Appoints Retired CEO as New Hustler Fund Chairperson

The fund offers a range of loan categories tailored to different needs, including personal finance, microloans, SMEs, and start-ups. Personal loans, for instance, range from Ksh500 to Ksh50,000 and are repayable within 14 days. For larger enterprises, the fund provides loans up to Ksh250,000, ensuring that businesses at various stages of growth can benefit.

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