The Ministry of Cooperatives and Small and Medium Enterprises (MSMEs) has declared that Kenyans who default on Hustler Fund loans will no longer access credit from banks.
Addressing a gathering in Mombasa on Wednesday, September 10, Cooperatives Cabinet Secretary Wycliffe Oparanya explained that banks will now verify whether applicants have cleared their Hustler Fund loans before approving any new credit.
Oparanya claimed the directive is designed to promote repayment as well as accountability.
“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.
CS Oparanya at the same time revealed that the Hustler Fund has, since its launch in 2022, disbursed nearly Ksh70 billion to more than 26 million Kenyans.
The Ministry’s warning comes just a week after a leadership shake-up at the fund, where Henry Tanui replaced Elizabeth Nkukuu as the new Chief Executive Officer. The government is optimistic about the new boss, Oparanya stated, noting that the change was part of the Ministry’s move to ensure that the fund is more efficient.
“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.
Meanwhile, Tanui confirmed plans to redesign the loan collection process to ensure it is more efficient.
“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.
