On Tuesday, August 22, President William Ruto’s adviser on matters of financial inclusion, Moses Banda revealed that more than KSh 3 billion hustler fund loan had not been repaid.
Banda said that out of the Hustler Fund’s outstanding KSh10.2 billion worth of loans, about KSh2.9 billion in Hustler Fund loans had not been serviced by the borrowers as per the agreed schedule.
“Out of the KSh 33 billion that has been lent out [under the Hustler Fund], the outstanding loan book is about KSh 10.2 billion; remember these are short-term loans so they get repaid pretty fast. Out of the outstanding amount, 29 percent is not performing on time,” he said.
However, Kenya’s President William Ruto on Thursday, August 24, told the hustler fund defaulters to repay their loans.
Speaking in Rongai, Nakuru County while issuing title deeds to over 800,000 residents, the Head of State said there would be no escape route for defaulters.
“The government will ensure every borrower repays the loan. No default on the repayment,” the president said.
The president further said those who will default would not benefit from the KSh 10 billion set aside by the government to support businesses.
It is understood that Ruto has initiated talks with the World Bank for a KSh 20 billion loan to finance the Hustler Fund.
Banda said that only KSh 7.9 billion of the KSh 10 billion was performing on time.
“So, about KSh7.9 billion of the outstanding amount is performing on time. Just like any other lending, there will always be challenges of non-performing loans,” Banda said.
