The government is considering stern measures to recover approximately Sh7 billion owed by defaulters of the Hustler Fund.

With reports indicating that around 13 million Kenyans have failed to repay their loans, officials are now contemplating the seizure of funds directly from mobile wallets such as M-Pesa and Airtel Money of those in default, as well as potential deductions from airtime purchases.

Elizabeth Nkuku, the acting CEO of the Financial Inclusion Fund (Hustler Fund), revealed these considerations while addressing the National Assembly’s Special Funds Account Committee. 

“What we are looking at is to get money from their M-Pesa or airtime; we are in the process of considering appropriate legal provision,” Nkuku stated.

Despite multiple reminders, Nkuku highlighted that many borrowers, particularly those who availed themselves of loans in the initial months of the fund's rollout, have not made any repayments.

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“They are mostly people who borrowed in the first and second months, and the default amount is about Sh7 billion,” she said.

Interestingly, Nkuku noted that most defaulters have the capacity to repay, with records showing they transact an average of Sh21,000 in their accounts.

“The beauty of this Fund is that we have the phone numbers and the unique identifiers of the defaulters, the national ID. They are people of means, people who just don’t want to repay,” she remarked, underscoring the fund's ability to identify borrowers.

The committee members, led by Migori Woman Representative Fatuma Mohammed, raised concerns regarding the risks associated with dispensing uninsured loans to Kenyans.

Kabuchai MP Majimbo Kalasinga specifically queried the government about measures in place to secure the disbursed funds.

“Can we know if the money was insured and which insurance company? We can recommend the Fund to be wound up; how can we give out billions which are not insured?” he challenged.

In response, Nkuku confirmed that the Hustler Fund is indeed uninsured, reinforcing the government's decision to pursue aggressive recovery tactics.

As the government scrambles for a solution, the committee has instructed the Fund to provide full details of all defaulters for further action.