At least 800,000 Kenyans have defaulted on the Hustler Fund loans, President William Ruto has revealed.
Up to February 3, 2023, 18 million Kenyans had registered with the Hustler Fund, according to the statistics released by the Head of State on Friday.
“About 800, 000 are behind schedule in payment but it is my hope that they will refund to be able to pay more,” President Ruto said.
“After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen,” he said.
This comes at a time the Hustler Fund loan limits are set to rise as the government-backed affordable credit scheme enters its second phase, in February 2023.
Co-operatives and MSMEs Cabinet Secretary Simon Chelugui confirmed that, in the second phase intended to empower small businesses, Kenyans could access Hustler Fund loans of between Ksh100,000 and Ksh2.5 million.
The ongoing first phase allows borrowers to access between Ksh500 and Ksh50,000 repayable within 14 days. The increased limits will, however, only be available to Kenyans who have made timely repayments of their existing Hustler Fund loan balances. The government is also partnering up with Saccos to enable the disbursement of the funds to eligible borrowers.
More than 18.4 million Kenyans have subscribed to the Hustler Fund, with 5.6 million having borrowed multiple times.
Ahead of the Hustler Fund launch, President William Ruto had advised Kenyans running small businesses, including self-help groups, to prepare to take advantage of the fund by organizing themselves within Saccos.
Read: Hustler Fund Is Increasing Loan Limits- On One Condition
