The Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development has issued clarifications regarding loan recovery measures for the Hustler Fund.
In a statement released on Wednesday, Principal Secretary Susan Mang’eni emphasized that while banks and telecommunication companies assist in implementing the fund, they do not own the financial product.
Mang’eni noted that the Hustler Fund is entirely government-owned and operates under Kenyan law. She highlighted that over sh. 57.8 billion has been disbursed in loans, with sh. 45.5 billion already repaid.
“The Hustler Fund is distinct from banks and mobile money wallets. It is not part of the intermediaries’ financial product portfolio but rather a service provided by them to the Fund,” she explained.
“The Fund is fully government-owned, and its clients are directly linked to the Fund, not to the intermediaries.”
The PS assured that any default recovery measures would comply strictly with national data protection laws, clarifying that the role of service providers is solely technological and does not include access to customer financial portfolios.
She urged borrowers to repay their loans promptly to improve their credit scores, which would facilitate access to higher loan limits in the future.
“The default recovery measures under consideration will be in line with Kenyan laws and will respect data protection,” Mang’eni stated.
“We are committed to ensuring that these measures are lawful.”
The statement comes after Hustler Fund Acting CEO Elizabeth Nkuku appeared before a Parliamentary committee on Tuesday, where she hinted at the possibility of forceful recovery of debts.
Nkuku revealed that approximately 13 million Kenyans have defaulted on their loans, prompting the government to consider actions such as accessing funds from their M-Pesa accounts or deducting from airtime.
“We have the phone numbers and national ID identifiers of the defaulters. Many of them are capable individuals who simply refuse to repay,” she said.
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