President William Ruto’s government is considering writing off about KSh 6 billion in unpaid Hustler Fund loans, which were taken by about 10 million Kenyans.
Micro, Small and Medium Enterprises (MSME) Development Principal Secretary Susan Mang’eni said many of the said borrowers took small amounts, including KSh 500, once or twice in late 2022 when the product was launched and never repaid.
Speaking to the Departmental Committee on Trade of the National Assembly, Mang’eni said the repayment rate for personal loans stands at 80%, with KSh 53.8 billion already recovered out of KSh 65.5 billion disbursed.
She added that defaulters have been flagged as bad borrowers and cannot access new loans.
Mang’eni also revealed plans to include insurance and Affordable Housing products in the Hustler Fund, but noted that only KSh 1 billion is budgeted for these projects which is less KSh 5 billion needed.
