State hits a snag recovering Sh13b Hustler loans, Oparanya confesses

Government has acknowledged its inability to recover Sh13 billion advanced to Kenyans under the Hustler Fund (The Financial Inclusion Fund), signalling hard economic times Kenyans are grappling with.

Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya (pictured) yesterday confirmed 22.8 per cent of total advanced loans are yet to be repaid, a situation he said is worrying and likely to dilute the key purpose of the fund if not tamed.

“As at September 24, 2024 morning, some 22 million Kenyans have borrowed Sh57 billion from the Hustler Fund.
Out of the total borrowed money, Sh44 billion has been repaid with the balance of Sh13 billion not recovered. It has been lost in the wilderness and thus becoming difficult to recover,” he said.

Expediting recovery

But a good lesson, Oparanya noted is that two million Kenyans have consistently borrowed and repaid since the fund was established in the second quarter of 2022/23 financial year.

He confirmed that the government, Safaricom and other telecoms are expediting recovery of the loans to ensure all Kenyans benefit.
Past investigations by the government agencies have revealed that some Kenyans who borrowed the loans in the initial months later deactivated their phones lines with the major telcos while others have deliberately declined to repay the loans compounding the Oparanya’s ministry efforts to recover the same.

The CS made the remarks during the official unveiling of the Safaricom Investment Cooperative’s new brand –SIC Investment Cooperative at a Nairobi hotel.

Oparanya noted that even though the fund has contributed to deepening of financial inclusion in the country by elevating more Kenyans into the financial ecosystem, the increase in non-performing loans is worrying.

“We are proud to have strengthened the financial status of more Kenyans who for long have been sidelined by the big boys in the market. This has worked well in actualizing the aspiration of the Government as enshrined under the Bottom up Economic Transformation Agenda,” he added.