The government is now considering forceful measures to recover unpaid loans from Kenyans who borrowed from the Hustler Fund.
This follows concerns that Ksh.7 billion remains unpaid, with around 13 million Kenyans defaulting.
Elizabeth Nkuku, the acting CEO of the Financial Inclusion Fund (Hustler Fund), informed the National Assembly’s Special Funds Account Committee that despite several reminders, many defaulters have yet to repay their loans.
Nkuku revealed that most of these individuals borrowed during the fund's initial months of launch and can repay, with their transactions averaging Ksh.21,000.
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Nkuku stated that the government is now exploring legal options to recover the money, including deducting funds from M-Pesa accounts or airtime. "We have access to their phone numbers and national IDs; these are people of means, but they are unwilling to repay," she said.
The committee, led by Migori Woman Representative Fatuma Mohammed, questioned why the government was issuing unsecured loans given the high risk of default. Kabuchai MP Majimbo Kalasinga raised concerns about the lack of insurance coverage for the Hustler Fund and asked what safeguards are in place to protect the money being loaned.
Nkuku confirmed that the fund is not insured, so the government is considering forceful recovery methods. The committee has requested a complete list of all defaulters for further review.
