Hustler Fund defaulters to lose access to SHA 'Lipa Pole Pole' initiative
Wycliffe Oparanya said that 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 revealed plans to prevent around nine million Kenyans who have defaulted on Hustler Fund loans from accessing the Social Health Authority (SHA) Lipa Pole Pole initiative and other state credit schemes.
Since its launch three years ago, the fund has enrolled 26.5 million members.
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Principal Secretary in the State Department of Micro, Small and Medium Enterprises Development, Susan Mang’eni, stated that the total defaulted amount has slightly decreased to Sh5 billion, down from Sh6 billion.
PS Mang’eni stressed that borrowers who intentionally avoid repayment will face restrictions.
“If you do not pay back, then you are denying others an opportunity to use the facility. You are categorised as criminals,” Mang’eni said.
The PS also announced a financial amnesty for defaulters willing to clear their Hustler Fund loans.
The Hustler Fund currently holds total savings of Sh5 billion.
On Thursday, Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said that Kenyans who have failed to repay Hustler Fund loans will be barred from accessing credit from banks, SACCOs, and other financial institutions.
The new directive is said to be part of a broader strategy to enhance loan repayment discipline while expanding credit and market opportunities for Micro, Small, and Medium Enterprises (MSMEs).
“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”.
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