Cooperative and MSMEs Cabinet Secretary Wycliffe Oparanya has announced that his ministry will be taking action against Kenyans who have defaulted on loans from the Hustler Fund.
Speaking at a Small and Medium Enterprises Conference in Nairobi on Friday, Oparanya stated that the ministry is developing a system to track those who have not repaid their loans.
“You will soon see someone knocking at your door, asking if you can repay the Hustler loan for the benefit of others,” he said.
Oparanya commended the Hustler Fund as an innovative initiative aimed at creating wealth and job opportunities. However, he acknowledged that the fund has encountered significant challenges. In the first round of disbursements, 21 million people borrowed money, but 19 million failed to repay. Only two million borrowers have consistently repaid and borrowed regularly.
The CS also announced plans to recognize Kenyans who have demonstrated good borrowing behavior. “There is one individual now borrowing up to KSh 2 million and running a successful business. This is public money that should be borrowed and repaid so others can benefit from it,” he noted.
“For those 19 million defaulters, I am coming for you to ensure that you repay so others can benefit, and you can continue borrowing.”
He stressed that those who fail to repay their loans will be barred from borrowing again. “I want you to borrow repeatedly so that you can develop yourselves. As the government does its part, you must also do yours,” he added.
Oparanya reaffirmed the government’s commitment to creating a conducive environment for business. “It is you, the people, who can create wealth and employment in this country,” he said.
He pointed out that of the 20 million working population, 15 million are engaged in Small and Medium Enterprises. “The government can only employ one million people, leaving four million still jobless,” he observed.
