Lead image for State introduces incentive to boost Hustler Fund repayment amid growing defaults.
The government has launched a new business support programme for responsible Hustler Fund borrowers as it seeks to improve loan repayment and strengthen micro-enterprises, amid growing concern over an estimated Sh12.5 billion in defaulted loans.
The initiative comes at a time when the Hustler Fund borrowers have defaulted on about Sh12.5 billion in loans, representing an active default or non-repayment rate of about 15 per cent to 20 percent of the Sh90 billion that has so far been distributed to 28 million borrowers.
Last week, the fund, which has a partnership with Strathmore University and African Management Institute (AMI) said the new initiative dubbed Tukuze Hub provides training, financial literacy and documentation of successes.
Addressing a town hall baraza at Coast Car park in Mombasa county, the Hustler Fund representative Geoffrey Ochande said the initiative helps selected borrowers identify new opportunities, increase their incomes and build stronger businesses.
Strathmore University and AMI are experienced in business training and enterprise development across Kenya.
“Selected borrowers, identified based on their good repayment record, received an SMS inviting them to a short interview with a member of the Hustler Fund team. The interview confirms eligibility and provides more information about Tukuze Hub and the support available,” said Ochande.
He said the Hustler Fund baraza is designed as an interactive business forum that goes beyond a traditional government event.