The government has announced that nine million Kenyans are likely to be barred from accessing the Social Health Authority (SHA) Lipa Pole Pole credit programme and other state-backed financing facilities.

Principal Secretary for Micro, Small and Medium Enterprises Development, Susan Mang’eni, on September 12, said the measure targets Kenyans who defaulted on Hustler Fund loans.

She further specified that the measure would affect borrowers who have deliberately failed to repay loans issued three years ago, adding that such defaulters deny others an opportunity to use the facility.

Mang’eni revealed that the total default amount has dropped slightly to Ksh 5 billion from Ksh 6 billion, while the Hustler Fund currently boasts 26.5 million registered members.

She emphasised that those who intentionally refuse to pay will face restrictions in future government credit initiatives.

“If you do not pay back, then you are denying others an opportunity to use the facility. You are categorised as criminals,” she stated.

However, Mang’eni announced a financial amnesty for defaulters willing to clear their outstanding balances, acknowledging that some borrowers are unable to pay due to economic challenges such as inflation.

“We don’t have a problem with those who can’t pay because of many factors, including inflation… but to those purposely refusing and saying we won’t pay, we will seek alternative means like preventing them from accessing services such as SHA,” she added.

The Principal Secretary further disclosed that total savings within the Hustler Fund scheme now stand at Ksh 5 billion, reflecting continued participation despite the high default rate.

Speaking during the 62nd Madaraka Day celebrations held in Homa Bay County, President William Ruto unveiled a health insurance payment plan named “Lipa SHA Pole Pole”, aimed at easing the burden of annual premium payments for Kenyans in the informal sector.

Ruto said the initiative will allow contributors to the Social Health Authority to pay their premiums in instalments, rather than in one lump sum.

“To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as Lipa SHA Pole Pole,” Ruto announced.

Ruto said the government has paid KSh43 billion in claims to health facilities over the past eight months, with 4.5 million Kenyans receiving fully covered treatment under the Social Health Authority (SHA).

“Every registered Kenyan can access care in public and SHA-accredited facilities at no cost,” Ruto said.

He noted that SHA is settling payments promptly and that 1.4 million informal sector households have successfully enrolled in the program.

“Lipa SHA Pole Pole has been made possible through a strategic partnership between the Ministry of Health, mobile network operators, financial institutions, and MSMES, through the Hustler Fund,” he added.

Ruto emphasised that the system is straightforward and easily accessible to citizens.

“Citizens can dial *147# and follow the prompts to enrol and begin their contributions immediately,” he said.

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