The government is planning loan downgrades and targeted recovery strategies as some of the ‘radical’ measures to deal with those who have defaulted on their Hustler Fund loans for two years.
According to the State Department of Micro Small and Medium Enterprises (MSME) Development Principal Secretary, Susan Mang’eni, the fund has already established a credit rating system that will help in tracking down defaulters.
The rating scale ranges from A (excellent) to C3 (poor). Currently, six million Kenyans fall between A and B ratings, making them eligible for higher loan products.
