The government plans to seize the M-Pesa accounts of 13 million individuals who have not repaid their Hustler Fund loans, aiming to recover a total of Sh7 billion.
Elizabeth Nkukuu, the Acting Chief Executive Officer of the Hustler Fund, informed a Parliamentary committee that discussions are underway with telecommunications companies to facilitate this process and ensure the recovery of these funds.
During her appearance before the National Assembly committee, Ms. Nkukuu noted that many of the delayed payments were from borrowers who took loans in the initial two months after the fund was launched.
“Negotiations are ongoing with phone companies to deduct the owed amounts directly from M-Pesa accounts along with applicable transaction fees,” she explained.
To date, approximately 24 million Kenyans have borrowed Sh57.8 billion from the Hustler Fund, with two million borrowers currently in a good position to repay their loans.
In a related development, coffee farmers are expressing optimism about the future despite facing numerous challenges.
Changes implemented by the government are expected to yield positive results.
In the 2023/2024 season, coffee farmers earned Sh24.3 billion from selling 691,956 bags at the Nairobi Coffee Exchange (NCE), which concluded recently.
This past year, trust issues arose between farmers and sector stakeholders due to delays in remittances to cooperative bank accounts and other obstacles.
Deputy President Rigathi Gachagua encouraged coffee farmers to sell their coffee through the NCE, as many had previously opted to work with traditional traders.
In January, coffee brokers from Kirinyaga Slopes, Alliance Berries, and New KPCU successfully urged cooperatives to auction their coffee.
According to the Food and Agriculture Authority (AFA), last year’s coffee production amounted to 32,652 tons through auctions and 9,350 tons through direct sales.
Lisper Ndung’u, CEO of NCE, reported that they successfully sold 691,956 sacks of coffee at auction and are optimistic about increasing that number next year.
Ndung’u highlighted the strong demand for quality coffee and urged farmers to boost their production.
Deputy President Gachagua recently reassured coffee farmers that the changes he is overseeing are beginning to yield results, a sentiment echoed by Ndung’u.
In the past year, Alliance Berries sold 189,845 bags for Sh6.8 billion, New KPCU sold 145,733 bags for Sh4.8 billion, and Kirinyaga Slopes sold 118,964 bags for Sh4.6 billion.
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