The government has announced its intention to lock out Kenyans who have failed to repay Hustler Fund loans from accessing credit from banks, SACCOs, and other financial institutions.
This was announced by the Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya in Mombasa during the Kenya Public-Private Sector MSMEs Dialogue, which brought together more than 3,000 entrepreneurs adding that the new directive is part of a broader strategy to enhance loan repayment discipline while expanding credit and market opportunities for Micro, Small, and Medium Enterprises (MSMEs).
“Before any bank approves a loan, it will confirm if the borrower has a history with the Hustler Fund and if they honoured the repayment,” Oparanya said.
Since its introduction in November 2022, the Hustler Fund has disbursed about Sh70 billion to 26 million Kenyans.
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The CS said the initiative was intended to provide affordable loans to the informal sector, which he described as “the backbone of Kenya’s economy.”
Oparanya also revealed plans for the East African MSME Expo to be held in Nairobi in November. Small businesses from all 47 counties will be chosen to showcase their products during the 10-day event.
He added that goods that meet Kenya Bureau of Standards (Kebs) requirements will qualify for export across the eight East African Community countries.
“We expect around 5,000 participants, and those whose products meet the required standards will get a chance to begin exporting their goods,” he said.
By Juma Ndigo
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