The president during his speech expressed confidence in Oparanya’s ability to steer the Hustler Fund towards the right direction
President William Ruto on Saturday, August 24 hailed Kenyans for their maximum commitment towards the Hustler Fund in terms of borrowing loans and repaying them on time.
Speaking to attendees during Cabinet Secretary Wycliffe Oparanya’s homecoming in Kakamega County, the Head of State revealed that 80 percent of Kenyans who had borrowed loans from the Fund had repaid.
“50,000 Kenyans borrow from the Hustler Fund every morning. They have already borrowed about Ksh52 billion. And these people are good because they borrow and repay.
“But there are a few with issues and we’ll deal with them. The repayment of the Hustler Fund is 80 percent,” Ruto remarked.
President William Ruto being taken through how to access the Hustler Fund during its launch on November 30, 2022. /PCS
Following the success of the Fund, Ruto announced that he had budgeted an additional Ksh3 billion for the fund and that Ksh1 billion had already been disbursed, a move that would entice more Kenyans into borrowing from the loan kitty.
The president during his speech expressed confidence in Oparanya’s ability to steer the Hustler Fund towards the right direction including putting in place the right policies to allow for more borrowing through increased loan limits.
“I am very confident that under your leadership more Kenyans are going to access funds. Next month, we are launching phase two of the fund to give loans to businesses where loans up to Ksh1 million will be accessed. I’m confident you are going to take charge,” Ruto remarked.
However, Ruto noted the government would similarly find a way to deal with defaulters. His remarks came after CS Oparanya issued a stern warning to Hustler Fund defaulters, revealing that a system would be put in place to track all Hustler Fund defaulters.
The CS who spoke during the Kenya Private Sector Alliance (KEPSEA) Annual Conference, stated that out of the 21 million borrowers, 19 million of them had defaulted. This effectively places the default rate at 90.48 percent.
“The Hustler Fund was very innovative, digital, but the problem we have had with it is that in the first round, 21 million people borrowed money. Out of the 21 million, 19 million disappeared with the money. Only two million people are borrowing regularly.
“This is public money which should be borrowed and repaid so that other people benefit from it. For those 19 million, I am coming for you to make sure that you pay so that others can benefit. We are coming up with a system that will now track you to know where you are, you will soon see someone knocking on your door telling you to pay back the Hustler Fund,” he stated.
President Ruto’s comments come amidst concerns about high default rates among borrowers that threaten the Fund’s sustainability, with statistics from the National Treasury revealing that the number of defaulters stood at 9.9 million people, 27 percent of the total borrowers.
