Cooperatives Cabinet Secretary Wycliffe Oparanya recently addressed concerns about whether the government plans to report Kenyans who have defaulted on loans from the Financial Inclusion Fund, commonly known as the Hustler Fund, to the Credit Reference Bureau (CRB).
In an interview with Citizen TV on Thursday, CS Oparanya clarified that the government is currently exploring alternative methods for dealing with loan defaulters rather than directly involving the CRB. He emphasized that the Ministry aims to recover the funds without negatively impacting the hustlers.
“We haven’t reached that point yet,” Oparanya stated. “As the President mentioned, these are hustlers. We want to approach them gradually and encourage repayment without disrupting their business activities.”
He further added, “We want them to continue doing business as citizens because if you close everything, how will they eat?”
The former Kakamega governor suggested that the government might enlist the help of chiefs and assistant chiefs to reach out to defaulters.
“We want to use methods such as having chiefs or assistant chiefs to talk to them because, as I said, we know the people where they come from,” he said.
Oparanya also appealed to Kenyans who have defaulted on their loans to make repayments. He admitted that he initially opposed the Fund before becoming a Cabinet Secretary due to a lack of understanding. His perspective shifted after he joined the Ministry and comprehended the Fund’s benefits.
The CS highlighted that the Hustler Fund has notably benefited many Kenyans, especially those in informal jobs, by enabling them to save for retirement. He pointed out that the fund’s savings have now reached approximately Ksh3.1 billion.
“I initially questioned the Fund’s purpose because, at the time, I was not fully aware of its goals. My understanding was limited while I was outside the government. However, now that I am in the Ministry, I have reviewed the documents and seen the positive impact,” Oparanya explained.
“I have seen the documents Kenyans are benefitting from and observed that people have accumulated about Ksh3.1 billion in savings. This substantial amount underscores the importance of having a pension, even for those not currently working.”
Oparanya’s remarks follow his August announcement about the government’s increased efforts to locate 19 million Hustler Fund loan defaulters.
At the Kenya Private Sector Alliance (KEPSA) Annual SME Conference, Awards, and Exhibition Ceremony in Nairobi, he revealed that out of the 21 million people who initially borrowed from the fund, 19 million have defaulted and become untraceable.
