Nairobi News

ChillaxGeneralMust ReadNewsWhat's Hot

Hustler Fund will collapse due to defaulters – Azimio Spokesperson Makau Mutua

By Wangu Kanuri December 6th, 2022 2 min read

Azimio la Umoja spokesperson Professor Makau Mutua has opined that the Hustler Fund would collapse as the government had no capacity to go after defaulters and so are the borrowers of the money have the ability to repay.

Mutua’s sentiments come after Nairobi Senator Edwin Sifuna encouraged Kenyans to borrow the money saying there was no legal recourse for the government to come after them because of not paying back.

Concurring with Sifuna’s sentiments, Mutua shared, “The government has no capacity, or political resolve, to go after defaulters of the so-called Hustler Fund, nor do most borrowers have the ability to repay. This is a witches’ brew that will turn the fund into nonsense on stilts. It will collapse in a heap of recriminations.”

Also read: Rachel Ruto demonstrates how to be a good wife to President Ruto

Also read: Kenyans borrowing Sh1million of Hustler Fund every minute

While the debate of repayment process is still ongoing, Deputy President Rigathi Gachagua shot back at Azimio la Umoja politicians saying their advice of not repaying the loan was foolishness.

The Hustler fund, a digital financial inclusion initiative launched by President William Ruto and was aimed at providing access to credit for individuals and Micro, Small and Medium Enterprises (MSEMs).

Individuals can now borrow between Sh500 and Sh50,000 while MSMEs seeking capital of between Sh100, 000 and Sh5 million shillings would benefit from the fund beginning February next year.

Also read: Governor Sakaja’s Urban Planning CEC says he’s worth Sh600 million

On the first day, Kenyans borrowed an average of Sh17 million an hour, highlighting the appetite for cheap loans. With Kenyans accessing the fund through the USSD code *254#, Simon Chelugui the Cabinet Secretary for Cooperatives and MSMEs shared that Sh3.7 billion of Hustler Fund had been disbursed to borrowers who applied for it.

By Monday and between 4 am and 9 am today, Kenyans borrowed Sh325 million from Hustler Fund (in 300 minutes) translating to more than Sh1 million per minute.

“The planning and execution have been meticulous…We have received very positive feedback. The figures prove that the fund has come at the right time. Hustler Fund has plugged in a real and properly diagnosed need afflicting ordinary Kenyans,” he said.

Also, read our top stories today:

WATCH: What happened to Blankets and Wine events? MDQ speaks

Watch: A week in the life of Embakasi East MP Babu Owino

Long distance matatus moved to Green Park Terminus

5 Popular Kenyan Trap musicians