President Ruto expresses concern over defaulters of Hustler Funds. He expressed regret that while a considerable percentage of Kenya have repaid their loans, Another group has chosen to default.
President also announced the government’s infusion of an additional 10 billion Kenya Shilling into the Hustler fund’s business account to launch a new product.
His Excellency William Ruto stated clearly that, defaulter are yet to repay individuals loans secured from Hustler Funds, before going to access for the new facility known as Hustler Group Loan.
Dr Ruto was speaking in a wake of growing concerns of over the rising rate of defaulters.
” We know that there is a percentage of Kenyans who are yet to repaid their debts, but I can tell you that they will not run far. We have put money into the business loan account, but they will not get the loan until you clear your arrears,” said President Ruto.
“You people have already borrowed Ksh 400 million more than 230,000. The good thing is that most of you are paying as they borrow more. As of now 68% are paying but there is another 30% and they know themselves,” He said.
“We have increased money for borrowing and we have said that there is an option to borrow as groups and we will give you between Ksh.20,000 to Ksh.1 million you plan yourselves. There is just a small problem before we have given you that Ksh.20,000 you will first need to pay the Ksh.500 which you borrowed the first time.”
In voicing hope that this measure will discourage defaulters, he maintained his stance that his government will not permit a minority to gain an unfair advantage in borrowing, especially when others have faithfully followed the prescribe guidelines and met their obligation punctually.
“You cannot escape that even when you plan I am not sleeping, I am also planning on my end. Even if it were you, if a person has made away with Ksh.500 will you give them Ksh.20,000?” he posed.
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“You are the one to decide if you want to borrow first pay the amount you went away with. You have nobody to blame , the opportunity you will destroy it yourselves.”
By June, information presented by the Cabinet Secretary for co-operatives and MSME Development, Simon Cheiugui, indicated that Ksh.31.5 billion had been distributed, with loan repayment amounting to Ksh.21.2 billion. Additionally, the saving account had accumulated to Ksh.1.5 billion.
Cs Cheiugui also reported that the fund’s registered members have now reached 20 million, out of which 7.1 million individual have borrowed from the fund and repaid multiples times.
Furthermore, a sum of 170.376 groups has been established, leading to a disbursement of approximately Ksh.20 million.
President Ruto inaugurated the Hustler Fund on November 30,2022 and facilitated its accessibility through mobile money services platforms
