Share
The government will rely on national identification records to trace borrowers who default on loans issued through the Hustler Fund, Chief Executive Officer Henry Tanui has said.
Tanui indicated that the government remains committed to recovering funds disbursed under the programme but stressed that the process will prioritise borrower identification and public awareness rather than aggressive debt collection tactics.
Speaking about loan recoveries, Tanui explained that every borrower is tied to the loan through their national identification number, making it difficult for defaulters to evade repayment even if they change their mobile phone numbers or SIM cards.
“The young people who borrowed and thought they could disappear, they can’t because their IDs are linked to the loans,” he said.
Loan Recovery Strategy
Tanui emphasised that the fund’s leadership is determined to recover public money issued to borrowers, noting that repayment remains a key pillar of sustaining the government-backed credit facility.
He said the programme will continue tracking borrowers through national identification systems to ensure accountability while also maintaining a fair approach to debt collection.
“Except for those who have passed on, we will collect the money,” he said.
The Hustler Fund, launched to provide affordable credit to individuals and small enterprises traditionally excluded from mainstream banking, has already recorded significant borrowing volumes since its rollout.
Also Read: Govt Sets Record Straight on Automatic Fuliza Deductions for NYOTA Beneficiaries
Loan Uptake and Repayment Data
In addition, Tanui revealed that the total amount borrowed by the borrowers from the facility stood at Ksh 83 billion as of Wednesday, with a significant amount of Ksh 71 billion already being paid.
He further revealed that a total of Ksh 5.3 billion has been saved through the facility, indicating that the facility is a double-edged sword that offers both loans and savings services to borrowers across the country.
Even though the fund has witnessed a significant repayment rate, Tanui revealed that the fund still experiences a default rate of 15 per cent, a situation that the management is working hard to address.
Data from the fund revealed that the county with the highest number of borrowers is Nairobi, followed closely by Kiambu, indicating that there is a significant demand for micro-finance in Kenya, particularly in the urban and peri-urban regions.
Also Read: David Ndii Among Four Newly Appointed Directors at Kenya Airways
No Harsh Debt Collection Measures
Tanui sought to address lawmakers’ worries about how the government would handle defaulters, especially on the issue of whether defaulters would face legal action if they failed to repay the loans.
In response to a query from North Imenti MP, Mr. Rahim Dawood, the CEO clarified that the fund would not use harsh debt collection measures, a common practice among many unofficial money lenders.
“We will not behave like shylocks. We will not come to pick up your items if you default,” he said.
Instead, Tanui said the programme will focus on sensitisation and financial education, encouraging borrowers to understand the importance of repaying loans to keep the revolving fund operational for other Kenyans.
He maintained that the government’s strategy is designed to protect the dignity of borrowers while ensuring public funds are responsibly managed and recycled to support more entrepreneurs and individuals seeking affordable credit.
Follow our WhatsApp channel for instant news updates
A photo of the Hustler Fund logo for illustration purposes. PHOTO/ Courtesy.