A total of 9 million Kenyans have defaulted on loans from the Hustler Fund, which currently has 26.5 million registered members since its inception three years ago.

The Principal Secretary, State Department of Micro, Small and Medium Enterprises Development, Susan Mang’eni, says the total default amount has dropped slightly to Ksh.5 billion, down from Ksh.6 billion.

PS Mang’eni says borrowers who have purposefully refused to pay the loan acquired three years ago will not have access to other government credit facilities, such as the Social Health Authority (SHA) Lipa Pole Pole initiative.

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

The PS however announced financial amnesty to defaulters willing to offset their Hustler Fund loans.

“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 said.

Citizen Digital caught up with Kennedy Kariuki, who trades in curtain metal rods at his warehouse in Githurai, while preparing a batch to be delivered to his client.

Kariuki, who was initially employed, started his own venture in 2023 after successfully acquiring a loan facility from the Hustler Fund.

“Nilikopa nikianza na Ksh.3,000 hadi Ksh.12,500 na sasa nimekuwa nikilipa ili nikopeshe tena. Interest ni kidogo, ni chini ya Ksh.100,” said Kariuki.

However, Kariuki says his current Hustler Fund limit of Ksh.31,500 is preventing him from expanding his business.

“Tukipata zaidi itatusaidia kupata raw materials mingi na kuhudumia wateja wengi,” Kariuki noted.

The total Hustler Fund savings currently stand at Ksh.5 billion.