The government has initiated plans to track down defaulters of the Hustler Fund to recover unpaid loans.
A National Treasury report reveals that 94% of the 22 million borrowers defaulted on their repayments, leading to a steep decline in disbursements.
In 2024, government lending through the Hustler Fund plummeted by 93.3%, dropping to Ksh800 million.
Cabinet Secretary for Co-operatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliff Oparanya, highlighted the adverse impact of defaults on small businesses. “For those 19 million people, I am coming for you to make sure you pay so that other borrowers can benefit too,” he stated.
CS Oparanya emphasized that the default crisis has limited short-term loan access for small businesses, slowing their growth and hindering economic development.
The CS noted that recovered funds would be redirected to borrowers with good credit scores.
