MPs Order Government to Provide Phone Numbers of Hustler Fund Defaulters

The National Assembly Special Funds and Accounts Committee has directed the Ministry of Cooperatives to provide a comprehensive list of Hustler Fund loan defaulters. The directive, issued on Tuesday, aims to include defaulters’ names, amounts owed, and their phone numbers sorted by constituency. This move is part of efforts to address the high default rate of the Hustler Fund, a loan program initiated by the government to support small businesses.

During a session with the Cooperatives Principal Secretary, Susan Mang’eni, the committee, chaired by Migori Town MP Fatuma Zainab, highlighted the need for the list to ensure the accuracy of information provided by borrowers during registration. The Fund has disbursed over KSh13 billion, with a default rate of 78%, raising concerns about the management of public resources.

Highlights:

MPs Demand Accountability
Government’s Plan to Track Defaulters
Uninsured Fund Raises Concerns

MPs Demand Accountability

The directive comes after ministry officials failed to provide critical documents relating to 19 audit queries from the 2022/2023 financial year. In their defense, the officials cited staffing shortages and miscommunication as reasons for their inability to produce the necessary evidence. They also mentioned that they had been relying on guidance from the Auditor General’s office due to the lack of personnel.

Mbooni MP Kivasu Nzioka expressed disbelief at the situation, questioning how a fund managing such a large amount of money could lack essential staff to track its performance. “How can a fund have KSh13 billion to disburse but lack crucial personnel to track it?” Nzioka asked.

Uninsured Fund Raises Concerns

Another major issue raised during the session was the fact that the Hustler Fund is not insured. MPs expressed alarm over how the Ministry plans to recover the billions in bad debt, given that 78% of the borrowers have defaulted. Without insurance, the fund faces a significant challenge in recouping the loans disbursed.

Government’s Plan to Track Defaulters

This latest development comes just weeks after Cooperatives Cabinet Secretary Wycliffe Oparanya revealed the government’s intention to pursue defaulters. Speaking at the Kenya Private Sector Alliance (KEPSEA) annual conference in August, Oparanya disclosed that out of the 21 million Kenyans who borrowed from the Hustler Fund, 19 million had defaulted on their loans.

Oparanya emphasized that the Hustler Fund is public money and must be repaid to allow other applicants to benefit from it. “We are coming up with a system that will track you to know where you are. You will soon see someone knocking on your door, telling you to pay back the Hustler Fund,” the Cabinet Secretary warned.

As the government prepares to crack down on defaulters, the MPs’ demand for a detailed list of borrowers marks a crucial step in ensuring accountability and transparency in the administration of the Hustler Fund.