Cooperative and MSMEs CS Wycliffe Oparanya has declared his intention to pursue individuals in Kenya who have failed to repay their loans from the Hustler Fund.
During a Small and Medium Conference held in Nairobi on Friday, the CS indicated that his ministry is in the process of establishing a system to monitor those who have not fulfilled their loan obligations. READ FULL STORY
“You may find someone at your doorstep inquiring whether you can repay the Hustler loan for the benefit of others,” he stated.
Oparanya emphasized that the Hustler Fund represents a groundbreaking initiative aimed at generating wealth and creating job opportunities.
“The problem we have had with the fund is that during the first round, 21 million people borrowed money but out of this number, 19 million disappeared with the money. Two million are borrowing regularly,” he stated.
Oparanya additionally declared that his ministry will soon recognize and reward Kenyans who demonstrate responsible borrowing practices.
“There is one who is now borrowing up to Ksh 2 million and doing very good business. This public money which should be borrowed and repaid so that other people benefit from it
“For those 19 million, I am coming for you to make sure that you pay so that others can benefit, even yourself can benefit,” he said while delivering his speech.
Oparanya observed that individuals who take out loans and fail to repay them are ineligible for future borrowing.
“I want you to borrow again and again so that you can develop yourselves. As the government tries its bit, you must also do the same,” he added.
As earlier reported across multiple news publications, Oparanya said he was opposed to the Hustler Fund because he had not known its facts.
Speaking when appearing before the Committee on Appointments, he said now he has been briefed about the Fund and understands it better.
“I think this Fund, if well managed, is a Fund that will take our people from poverty,” he said.
Oparanya however said the Fund was launched in a hurry without proper legal structures in place, noting that from Ksh 13 billion, the Fund’s turnover is now at Ksh 55 billion.
Out of this, he said, 21 million people have been involved in the repeated borrowing and Ksh 43 billion has been recovered.
“So, there is Sh12 billion which has not been recovered. However, there is a strong digital infrastructure that they can determine who has the money. The only problem is that there is no legal framework to recover the amount,” he said.
The Fund was launched in November 2022.
