Banks to Block Hustler Fund Defaulters From Accessing Loans, Govt Warns

The Ministry ofCooperatives andSmall and Medium Enterprises (MSMEs) has announced that Kenyans who fail to repay their Hustler Fund loans will be blocked from borrowing from banks.
Speaking in Mombasa on Wednesday, September 10, Cooperatives Cabinet Secretary Wycliffe Oparanya claimed that banks will now be checking whether an individual has repaid their Hustler Fund before a loan is approved.
Oparanya stated that the move aims to ensure that Kenyans are held accountable so that they may repay their outstanding loan.
According to the CS, nearly Ksh70 billion had been distributed to over 26 million Kenyans since its establishment in 2022, which aims to support micro, small, and medium enterprises across Kenya.
“If you have not repaid the Hustler Fund, and when you go to any bank, you will be deemed ineligible for a loan because you cannot borrow and repay it, so they will not give you any loan,” Oparanya said.
A recent report by the Kenya Human Rights Commission, titled “Failing the Hustlers”, revealed a default rate of 68.3 per cent by the end of 2022, indicating that approximately Ksh340 is lost for every Ksh500 disbursed.
However, after the report,President William Ruto denied the claimsand asserted that the fund gets an over 83 per cent repayment rate.
Exactly a week ago, on Wednesday, September 3, CS Oparanya unveiled Henry Tanui as the new Chief Executive Officer of the fund, succeeding Elizabeth Nkukuu.
Oparanya, who expressed confidence in the new CEO, claimed that the move to appoint a new boss was part of the government’s initiative to enhance the effectiveness of the fund.
“I encourage the Hustler Fund team to enhance their efforts in promoting timely repayments to improve credit scores and to expand financial literacy programmes that support Kenyans in succeeding,” Oparanya stated.
While acknowledging the challenges the fund has faced over the past three years, which include the collection process, Tanuiexpressed optimism about the future of the Hustler Fund.
“My focus will be on reengineering our collection processes, strengthening financial literacy, and building ecosystem lending channels that expand our reach and deepen our impact,” Tanui said.