Cooperative and MSMEs Cabinet Secretary Wycliffe Oparanya has announced a crackdown on Kenyans who have failed to repay loans from the Hustler Fund. Speaking at a Small and Medium Conference in Nairobi on Friday, Oparanya outlined his ministry’s plans to pursue defaulters aggressively and ensure that the funds are repaid to benefit others.
Oparanya’s remarks come amid growing frustration over the management and impact of the Hustler Fund, an initiative aimed at fostering entrepreneurship and economic empowerment among Kenyans. The fund was launched with the promise of creating wealth and job opportunities by providing affordable loans to small businesses and individuals. However, the initial phase has faced significant challenges, with a high rate of default among borrowers.
During his speech, Oparanya revealed that the first round of lending had seen 21 million people borrow money. Yet, a staggering 19 million of these borrowers have reportedly defaulted, leaving only 2 million who continue to utilize the funds responsibly. This high default rate has prompted the government to take a more proactive approach in ensuring repayment and holding defaulters accountable.
“You will see someone knocking at your door and ask, can you pay the Hustler loan back for the benefit of others,” Oparanya warned. This statement reflects a tough stance by the ministry, which is now developing a system to track and pursue those who have not repaid their loans. The goal is to recover the funds and reinvest them to support other entrepreneurs who are in need of financial assistance.
In addition to the crackdown on defaulters, Oparanya also announced an upcoming initiative to recognize and reward responsible borrowers. His ministry plans to award Kenyans who have demonstrated good borrowing practices and effectively managed their loans. “There is one who is now borrowing up to Sh2 million and doing very good business. This public money should be borrowed and repaid so that other people benefit from it,” he explained.
The recognition of responsible borrowers aims to incentivize good financial behavior and encourage more people to adhere to their loan repayment commitments. By highlighting success stories, Oparanya hopes to set an example and motivate others to manage their loans more diligently.
Oparanya stressed the importance of the Hustler Fund in fostering economic growth and reducing unemployment. He pointed out that, of the 20 million working population, 15 million are engaged in Small and Medium Enterprises (SMEs). Despite this significant contribution, the government can only employ one million people directly, leaving an additional four million individuals still jobless. This disparity underscores the need for effective support systems for SMEs and entrepreneurs.
“The government is committed to creating a conducive environment for people to do business. It is you, people who can create wealth and employment in this country,” Oparanya asserted. He emphasized that while the government works to improve the business environment, individuals must also fulfill their responsibilities, including repaying loans to ensure the sustainability of such initiatives.
Oparanya’s announcement reflects a broader effort to address financial mismanagement and enhance the impact of government-funded programs. By cracking down on defaulters and rewarding responsible borrowers, the ministry aims to restore trust in the Hustler Fund and ensure that it fulfills its original purpose of empowering Kenyans and driving economic development.
As the government moves forward with these plans, both borrowers and potential borrowers will be closely watching to see how these measures impact the Hustler Fund’s effectiveness and overall success in achieving its objectives.
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