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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