The State Department for Micro, Small and Medium Enterprises is seeking Ksh 300 million in a supplementary budget to pursue recovery of defaulted loans under the Hustler Fund, with Ksh12.5 billion still unpaid by borrowers.
According to the department, the funds will primarily be used for awareness and sensitization campaigns aimed at encouraging defaulters to repay their loans.
Officials say no legal action will be taken against those who have defaulted, opting instead for outreach efforts to boost repayment. The department is now awaiting approval from the Parliament of Kenya to access the funds.
Government data shows that out of Ksh83 billion disbursed through the fund, only Ksh71 billion has been repaid, leaving a significant shortfall.
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The fund, headed by CEO Henry Tanui, has also requested additional allocations, including Ksh27 million for recruitment of technical personnel, Ksh156 million to facilitate Constituency Uwezo Fund Committees, Ksh100 million for office equipment, and another Ksh100 million to finalize key policies.
Meanwhile, the National Assembly Special Funds Accounts Committee has called for the tracking of defaulters linked to the Financial Inclusion Fund.
The Hustler Fund was launched on November 30, 2022, by William Ruto to provide affordable credit at an annual interest rate of 8 percent to small traders, micro-businesses, and individuals. By last year, the fund had reached over 26 million Kenyans through the *254# mobile platform.
By Obegi Malack
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