Wycliffe Oparanya, Cabinet Secretary for Cooperatives, has observed that since the establishment of the state facility, the Hustler Fund debt recycling has reached its lowest point.
The CS noted that more than 19 million Kenyans have not paid back their loans, raising the possibility of taking action to retrieve the money.
According to Oparanya, a digital system would be developed to monitor the borrowers and find the defaulters.
Wycliffe Oparanya, Cabinet Secretary for MSME Development and Cooperatives, noted that more over 19 million Kenyans have fallen behind on their state-owned loans.
President William Ruto established the digital fund in 2022 with the goal of enhancing Kenyan individuals’ and micro, small, and medium-sized businesses’ access to responsible financing.
Kenyans would be eligible for loans up to KSh 1 million on a decreasing balance basis, at an annual percentage rate of 7%. How much was borrowed by Kenyans from Hustler Fund?
Only 2 million of the 21 million Kenyans who have applied to the facility since its founding have repaid, according to the CS.
“The Husler Fund was a highly creative, digital initiative, but we have encountered an issue with it: during the initial round, 21 million individuals made contributions.
Nineteen million of the twenty-one million vanished with the money. Only two million people frequently take out loans, according to Oparanya.
He noted that government assistance was necessary because the Hustler Fund debt recycling was at its worst. Speaking at the inaugural annual SME conference, awards, and exhibition launch in Nairobi was the CS.
“This is public money, and it should be borrowed and returned in order to help other people.” “I’m coming for you, those 19 million, to make sure you pay so others can benefit,” he said. In the future, Oparanya said, the government will create a system to follow the borrowers digitally and locate them in case they fall behind on their payments.
We’re developing a system that will now be able to track you and determine your whereabouts. Someone will be knocking, the CS said.
By Newshub