Nairobi, Kenya – August 25, 2024: Cooperative and MSMEs Cabinet Secretary Wycliffe Oparanya has issued a stern warning to Kenyans who have defaulted on their loans from the Hustler Fund. Speaking at a Small and Medium Enterprises (SMEs) Conference in Nairobi on Friday, Oparanya announced that his ministry is developing a tracking system to recover loans from defaulters and ensure that the fund continues to benefit others.
Tracking Down Defaulters
“You will see someone knocking at your door and asking, can you pay the Hustler loan back for the benefit of others,” Oparanya warned, making it clear that the government is serious about recovering the outstanding loans. The CS emphasized that the Hustler Fund was designed to create wealth and job opportunities, and that the culture of borrowing without repayment must be addressed to ensure its sustainability.
Oparanya revealed that while the Hustler Fund initially attracted 21 million borrowers, a staggering 19 million of them have defaulted on their loans. Only 2 million borrowers continue to borrow and repay regularly, a statistic that has raised concerns about the fund’s effectiveness and longevity.
Rewarding Good Borrowers
In a bid to encourage responsible borrowing, Oparanya also announced plans to reward Kenyans who consistently repay their Hustler Fund loans. “There is one who is now borrowing up to Sh2 million and doing very good business. This public money should be borrowed and repaid so that other people can benefit from it,” he explained.
The CS stressed that those who repay their loans not only help others access the fund but also position themselves to continue benefiting from it. “For those 19 million, I am coming for you to make sure that you pay so that others can benefit, even yourself can benefit,” he stated.
Building a Culture of Responsible Borrowing
Oparanya underscored the importance of developing a culture of responsible borrowing in Kenya. He noted that borrowers who do not repay their loans will not be eligible for future loans, limiting their opportunities for financial growth. “I want you to borrow again and again so that you can develop yourselves. As the government tries its bit, you must also do the same,” he urged.
The CS highlighted the government’s commitment to creating a conducive environment for business and emphasized the crucial role that SMEs play in the economy. “It is you, people who can create wealth and employment in this country,” Oparanya said, pointing out that 15 million of the 20 million working population in Kenya are employed in the SME sector.
The Bigger Picture
Oparanya’s comments come at a time when the government is under pressure to ensure that public funds are used effectively to stimulate economic growth. With the Hustler Fund seen as a key tool for empowering small businesses, the focus on loan recovery and responsible borrowing is crucial for the fund’s continued success.
The CS also highlighted the challenges of unemployment in Kenya, noting that while the government can only employ one million people, there are still four million who are jobless. By encouraging responsible borrowing and supporting SMEs, Oparanya believes that the Hustler Fund can play a pivotal role in addressing these challenges and driving economic development.
