Africa-Press – Kenya. Azimio spokesperson Makau Mutua has said that the Hustler Fund will collapse because the government has no capacity to go after defaulters.
In a statement on Tuesday, Mutua said Kenyans borrowing the Hustlers Fund do not have the ability to repay.
“The government has no capacity, or political resolve, to go after defaulters of the so-called Hustler Fund, nor do most borrowers have the ability to repay. It will collapse in a heap of recriminations,” he said.
This is after President William Ruto launched the fund on Wednesday.
“Through the launching of this fund, we are supporting underserved Kenyans with services and products that are responsive to their enterprises. Also, liberating them from shylocks and establishing a culture of saving, investment, and social security,” he said.
The fund is specifically designed to support small-scale traders in the country.
The Hustler Fund comprises four products: personal, micro business, SME and start-up loans.
To access the fund, Kenyans can dial *254# on their mobile phones.
During the launch, borrowers were warned against defaulting with the State issuing strict measures to curb the same.
Those who default on the loans will see their interest rates increase from 8 per cent to 9.5 per cent.
If a customer will not have paid the loans within the required time, they will be added an extra 15 days, before the increment of the interest rate.
The borrowers who default will also have their Hustler Fund account frozen.
“After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen,” he said.
Ruto said loan defaulters will not be listed on CRBs, as they will have another chance of reborrowing.
By midnight December 5, borrowers had repaid Sh281 million of the Hustler Fund according to the latest data.
Cooperatives and MSMEs Cabinet Secretary Simon Chelugui said the amount disbursed had crossed the Sh4 billion mark earlier in the day and now stands at Sh4.6 billion.
The number of Kenyans who have registered with Hustler Fund has also risen to 12 million.
Total transactions stood at 8 million as of midnight.
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