The government has warned Kenyans who default on Hustler Fund loans. They will not get loans from banks, SACCOs, or other lenders. Cooperatives and MSMEs Development CS Wycliffe Oparanya made the announcement on Tuesday.
He spoke during the Kenya Public-Private Sector MSMEs Dialogue at Tononoka Social Hall in Mombasa. Oparanya said banks will check loan records before approving new applications. “If you defaulted, your loan request will be denied,” he said. “This is about accountability. The fund must benefit more Kenyans.”
As of May, Hustler Fund defaults stood at KES 6 billion. The government launched the fund in November 2022. Since then, it has disbursed KES 70 billion to 26 million Kenyans. Oparanya said the fund supports small businesses and the informal sector.
He stressed the need for repayment discipline to keep the fund sustainable. The event drew over 3,000 entrepreneurs. They discussed challenges facing Micro, Small, and Medium Enterprises (MSMEs).
Oparanya said nine out of ten Kenyans rely on MSMEs for income and jobs. He highlighted other programs like the Uwezo Fund and Credit Guarantee Scheme. The scheme backs loans of up to KES 10 million for disciplined borrowers.
Oparanya urged Kenyans to use mobile payments for speed and transparency. He also announced an East African MSME Expo in Nairobi this November. Businesses from across Kenya will showcase products at the 10-day event. Products meeting KEBS standards will qualify for export in the region.
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