Oparanya: Hustler Fund loan defaulters to be locked out of bank, SACCO loans
The CS said the initiative was intended to provide affordable loans to the informal sector, which he described as “the backbone of Kenya’s economy.”
Kenyans who have failed to repay Hustler Fund loans will be barred from accessing credit from banks, SACCOs, and other financial institutions, the government has stated.
The new directive is part of a broader strategy to enhance loan repayment discipline while expanding credit and market opportunities for Micro, Small, and Medium Enterprises (MSMEs).
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Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya made the announcement in Mombasa during the Kenya Public-Private Sector MSMEs Dialogue, which brought together more than 3,000 entrepreneurs.
By May this year, the government had recorded Sh6 billion in unpaid Hustler Fund loans.
“Before any bank approves a loan, it will confirm if the borrower has a history with the Hustler Fund and if they honoured the repayment,” Oparanya said.
“This is about accountability. If you took money from the Fund and failed to repay, you will not access credit,” he added.
Since its introduction in November 2022, the Hustler Fund has disbursed about Sh70 billion to 26 million Kenyans.
The CS said the initiative was intended to provide affordable loans to the informal sector, which he described as “the backbone of Kenya’s economy.”
“Nine in every 10 Kenyans are engaged in MSMEs. These enterprises drive the country’s economy. Our responsibility is to ensure they have access to affordable finance and a stable market environment,” he added.
Alongside the Hustler Fund, the government has put in place other programmes such as the Uwezo Fund and the Credit Guarantee Scheme.
The Credit Guarantee Scheme enables businesses with good track records to access loans of up to Sh10 million through government backing.
“For those who demonstrate discipline and build a good credit score, the Hustler Fund allows you to borrow up to Sh150,000. For defaulters, access to any form of credit will be denied,” Oparanya said.
He also highlighted the government’s push towards digital transactions to promote a cashless economy. “We encourage Kenyans to buy and sell using their phones. It is fast, safe and efficient,” he said.
On market access, Oparanya revealed plans for the East African MSME Expo to be held in Nairobi in November. Small businesses from all 47 counties will be chosen to showcase their products during the 10-day event. Goods that meet Kenya Bureau of Standards (Kebs) requirements will qualify for export across the eight East African Community countries.
“We expect around 5,000 participants, and those whose products meet the required standards will get a chance to begin exporting their goods,” he said.
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