At least 800,000 Kenyans have not made their Hustler fund loan payments.
On Friday, President William Ruto stated that the loan defaulters were behind track with repayment.
“About 800, 000 are behind schedule in payment but it is my hope that they will refund to be able to pay more,” he said.
In an update on the Hustler Fund, Ruto stated that 18 million Kenyans had registered as of February 3, 2023.
The Hustler Fund was created primarily to help the nation’s small-scale retailers.
It includes start-up loans, personal loans, microloans for small businesses, and SME loans.
Kenyans can dial *254# on their cell phones to access the fund.
President Ruto had issued rigorous steps to prevent defaults and had advised borrowers against doing so.
The interest rates on those who fall behind on their payments will rise from 8% to 9.5%.
If a consumer doesn’t pay back their loans by the deadline, they will be given an additional 15 days before the interest rate is increased.
Additionally, the Hustler Fund will freeze the accounts of the defaulting borrowers.
“After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen,” he said.
Loan defaulters won’t be put on CRBs, according to Ruto, because they will have another opportunity to reborrow.