•The President noted that his government will not allow a few individuals to enjoy an undue advantage when it comes to borrowing
•Chelugui in his update noted that at least 20,699,178 people are signed up with the fund.
Image: FILE
The Kenya Kwanza government has revealed how it will tame Huslter Fund defaulters.
President William Ruto on Sunday said that the defaulters would not make a second transaction if they have a pending payment on the platform
"Those that have defaulted on individual loans when they apply for the group funding, which is the second product of the Hustler Fund, will not be allowed," he said.
The Head of State revealed that Kwale County accounts for 30 per cent of Hustler Fund defaulters.
"You people have already borrowed Sh400 million... The good thing is that most of you are paying as they borrow more. As of now 68 per cent are paying but there is another 30 per cent and they know themselves," Ruto said in Ukunda.
The President explained the government has increased money for borrowing and there is an option to borrow as groups, where Sh20,000 to Sh1 million can be granted.
"Before we give you that Sh20,000 you will first need to pay the Sh500 which you borrowed the first time," Ruto said.
However, the President noted that his government will not allow a few individuals to enjoy an undue advantage when it comes to borrowing yet others have been abiding by the set guidelines and paid their dues on time.
"You're the one to decide, if you want to borrow, first pay the amount you borrowed. You have nobody to blame, the opportunity you will destroy it yourselves," Ruto added.
As of July 16, 2023, the government had disbursed Sh33,067,395,968 in personal loans.
Data released by Co-operatives and MSME Development Cabinet Secretary Simon Chelugui revealed that Sh22,514,523,325 had been repaid and Sh1,654,102,355 accounts for the savings already made.
Chelugui in his update noted that at least 20,699,178 people are signed up with the fund.
He said that since it was launched, 45,822,172 transactions have been completed, with 7,241,481 of those being repeat customers.
On the second Hustler Fund product, Hustler Group Loan, CS Chelugui said Sh110,423,924 had been disbursed to various groups. Out of this, Sh2,260,660 has been repaid, while Sh5,521,196 is savings.
The CS said total groups created are 344,978 with at least 408,371 members pending approval. There are also 817,884 approved members.
Chelugui said the complete groups in the fund are 33,919 but only 28,144 can borrow from the fund.
Some 12,086 complete groups are yet to be assigned borrowing limits.
Loan requests pending member approval are 2,269. There are at least 16,352 Unique borrowing groups
As of June 1, 20,000 groups had been enrolled for the Hustler Group loans.
The money is offered at an interest rate of seven per cent per annum on a reducing balance of 1.5 per cent default rate.
The repayment period is six months from the disbursement date with borrowers having an option of repaying in instalments or lump sum.
It will also be available to individuals seeking to upscale their businesses where Sh10,000 to Sh200,000 is given under the same terms.