Gov't plans forceful recovery of Ksh.7B in defaulted Hustler Fund loans, set to access M-Pesa accounts

The Government is now mulling forceful recovery of monies owed by Kenyans who took loans from the hustler fund.

This is after growing concern from the fund that it might be difficult to recover Ksh.7 billion that has not been paid thus far.

According to the records, 13 million Kenyans have defaulted in paying their loans, and now the government says they may be forced to raid M-Pesa accounts of the defaulters and even deduct airtime.

“What we are looking at is to get money from their M-Pesa or airtime, we are in the process of considering appropriate legal provision,” she told the MPs.

Speaking when she appeared before the National Assembly’s Special Funds Account Committee, Financial Inclusion Fund (Hustler Fund) acting CEO Elizabeth Nkuku, said despite several reminders, the defaulters have since failed to repay the loan.

“They are mostly people who borrowed in the first and second months and the default amount is about Ksh.7 billion,” Nkuku told the committee.

According to Nkuku, most of the defaulters are capable Kenyans who can repay the loan, with a review of their accounts indicating that they transact an average of Ksh.21,000.

“The beauty of this Fund is that we have the phone numbers and the unique identifiers of the defaulters, the national ID. They are people of means, people who just don’t want to repay,” she said.

Members of the committee led by Migori Woman Representative Fatuma Mohammed wondered why the Government was dispensing monies that are not insured to Kenyans, given the risk of defaulters.

Kabuchai MP Majimbo Kalasinga wanted to know what measures the Government has put in place to secure the money that is being dispensed to Kenyans.

“Can we know if the money was insured and which insurance company? We can recommend the Fund to be wound up, how can we give out billions which are not insured?” posed Kalasinga.

Nkuku confirmed to the members that the Hustler fund money was not insured and that is why they will result to forceful recovery.

The committee directed the Fund to furnish it with details of all the defaulters.