The government will need an extra Ksh. 7 billion in order to better provide loans to the people of Kenya through the Hustler Fund.
Wycliffe Oparanya, the Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises, stated that the 13 billion-conditional allocation is not enough, and the money is going towards the Fund’s growing non-performing loans.
The Hustler Fund has disbursed 70 billion since its inception to 26 million borrowers, but at least six million have defaulted on payments. The high default rate is majorly due to the structural weaknesses of the fund, as Oparanya explains, which have made the borrowers loan repayment process difficult.
He elaborated that this has led to the fund experiencing cash crises and consequent loan disbursement delays. “The fund needs Ksh. 7 billion additional capital to be brought to a level where it can meet the loan requirements of Kenyans in a sustainable way,” stated the CS.
Oparanya stated that depositors with savings of below Ksh. 2 million in saccos that were under liquidated had been compensated with Ksh. 38 million from recovered assets.
To guarantee customer deposits further, he said that the Sacco Societies Regulatory Authority (SASRA) would start registering and supervising all saccos, including non-deposit-taking ones, as part of the effort to stop mismanagement and protect members’ savings.
Most of us took loan and never paid saying it’s payment for voting day. Si gava itulipie tuanze afresh Sasa.