The government has sought to clarify that recovery of Hustler Fund loans will be implemented under the law and in total adherence to data protection laws.
The clarification followed reports from a section of the media that the recovery process will be forcefully implemented via intermediaries such as banks and mobile service providers, sparking fears about the protection of the personal data of defaulters.
In a statement on Wednesday, MSMEs Development Principal Secretary Susan Mang’eni said the default recovery measures under consideration will be in line with the laws of Kenya and in strict adherence to data protection laws.
“The Fund is fully owned by the government and implemented in adherence to the laws of Kenya. The Hustler Fund clients belong to the Fund and not the intermediaries,” the PS said, adding that the Fund is separate from the banks and mobile money wallets.
She said the Hustler Fund Service providers partners' role remains the provision of technology and that the Fund is not offered as part of the intermediaries' financial product portfolio but as a service from the intermediaries to the Fund.
“The Fund is fully owned by the government and implemented in adherence to the laws of Kenya. The Hustler Fund clients belong to the Fund and not the intermediaries,” PS Mang’eni assured.
President William Ruto launched the Hustler Fund on November 30, 2022, with an initial loan amount of Sh50 billion as a policy intervention to unlock access to credit for Kenyans at the bottom of the economic pyramid.
The government, through the Ministry of MSMEs Development, engaged various intermediary service providers, including banks and all Telcos operating in Kenya to collaboratively develop and support the implementation of the Fund.
PS Mang’eni said since the inception of the fund, more than Sh57.8 billion in loans have been disbursed out of which Sh45.5 billion has been repaid.
This means Sh12.3 billion is yet to be repaid.
“We encourage Kenyans to repay their loans on time to build their individual credit score for higher loan limit access,” the PS said.
She said repayment of the loans will ensure that the Fund grows and deepens financial inclusion at the bottom of the economic pyramid.
“We wish to assure Kenyans that the government remains committed to the adherence of data protection laws and the default recovery measures will be within the law,” the PS assured.