The government is now considering taking a road that will make sure it recovers the ksh 7 billion in unpaid loan from the Hustler Fund Loan Defaulters. This shall be done by deducting the unpaid loan balance directly from the MPESA account of the defaulter.
Speaking before the National Assembly’s special fund committee, acting CEO of the Hustler Fund Elizabeth Nkukuu revealed about the ongoing conversation with Safaricom to execute a proper technique that will be efficient in the process.
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Nkukuu further remarked that the government has identified the defaulters, referred to be those who borrowed the funds during the initials months after the program was officially launched in November 2022.
In her statement, she made it crystal clear that, that group of individuals have been identified to be having the capacity to settle their loans but have chosen to default.
“It’s not that they cannot pay, they are who just don’t want to pay,” she remarked.
She further justified the necessity for the government to recover the loans, stating that the Hustler Fund is not insured. According to her, this is one of the ways the government has to adopt in order to ensure accountability and fiscal management among borrowers.
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In regards to the aspect of lacking insurance for Hustler Fund, members of the parliamentary committee showed deepest concerns on why the government could release such a huge sum of money without providing proper foundations to safeguard it against defaulters.
Answering the question on the technique will work, Nkukuu explained that the government is prepared to involve methods like making frequent phone call reminders before being decisive to resort to deducting the balance from M-Pesa and airtime from the defaulters.
This strategy received a handful support from Principal Secretary for Micro, Small, and Medium Enterprises Susan Mang’eni who emphasized on the need to execute this technique, further stating that defaulters have had ample time-nearly two years-to repay their loans.
According to you, should the government carry on with this strategy?