The Cabinet Secretary for Co-operatives and MSME Development, Wycliffe Oparanya, has called on Kenyans to repay loans borrowed through the Hustler Fund.
He highlighted the importance of financial discipline in ensuring the sustainability of government-backed initiatives and enabling others to access credit.
Speaking at a foundation launch in Vihiga, Oparanya stressed that loan repayments are essential for fostering economic opportunities.
"Take loans, invest in your businesses, and repay promptly. This allows others to benefit from the same resources to grow their ventures. Loan defaulting is not an option," he stated.
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The CS also encouraged entrepreneurs to utilize government financial programs as a stepping stone toward economic empowerment.
However, the issue of loan defaults remains a challenge. Many borrowers have failed to repay funds borrowed through programs like the Hustler Fund and Uwezo Fund, threatening the viability of these initiatives.
The government announced plans to introduce legal measures to address defaulters in response. Proposed enforcement actions include recovering unpaid Hustler Fund loans from mobile money accounts and airtime balances.
As of October 2024, the government aimed to recover Ksh.7 billion from approximately 13 million defaulters, ensuring the fund's sustainability for future borrowers.
