The Kenyan government is taking bold steps to address the high default rates on Hustler Fund loans, with plans to recover unpaid debts directly from borrowers’ M-Pesa accounts and airtime balances.

Key Highlights:

  • Over Sh13 billion has been disbursed through the Hustler Fund
  • Current default rate stands at approximately 78%
  • Recovery plan targets M-Pesa balances and airtime top-ups of defaulters

What’s Happening:

Elizabeth Nkukuu, the acting CEO of the Financial Inclusion Fund (Hustler Fund), revealed these plans during a meeting with the National Assembly’s Special Funds committee. The new recovery measures could begin in the coming months.

Why It Matters:

This move could affect thousands of Kenyans who have borrowed from the fund but haven’t repaid their loans. The high default rate of 78% has pushed the government to consider these stricter recovery methods.

Impact on Borrowers:

  • Defaulters may see automatic deductions from their M-Pesa accounts
  • Airtime top-ups could be redirected to cover loan payments
  • The measure aims to improve loan recovery rates

What’s Next:

The government is finalizing the implementation details of these new recovery measures, which are expected to roll out in the near future.

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