A large number of residents of counties believed to be strongholds of Azimio la Umoja One Kenya leader Raila Odinga are leading in the number of people who have defaulted in paying the Hustler Fund loans. A report issued by the Micro, Small and Medium Enterprises (MSME) Cabinet Secretary Simon Chelugui shows that most of the residents from Western Kenya and Ukambani are not repaying the loans within the required timelines. For example, Machakos, Kilifi, Kakamega, Mombasa, Kisumu, Kisii and Kitui are among the counties with a large number of Kenyans who applied and received the Hustler Fund loans. But those areas are among the 15 counties whose residents are struggling to pay the Hustler Fund. “Nationally, the repayment rate stands at 69 percent. We’re building a very good story backed by data. I am particularly impressed by the positive attitude shown by the majority of the beneficiaries,” CS Chelugui said. On the other hand, the report shows that residents of the Rift Valley and Mount Kenya region areas considered the stronghold of Kenya Kwanza, are leading in paying Hustler Fund loans. Nyeri tops the list of counties with the highest loan repayment rates, five months after the Hustler Fund’ s Personal Product was launched. Nyeri leads with 76.3 per cent followed by Kiambu at 75.3 per cent, while Nyandarua takes the third position with 74.5 per cent. Nairobi, which boasts of the highest number of subscribers at two million, is placed fourth with a repayment rate of 73.8 per cent. Other counties in the top ten are Laikipia (73.6 per cent), Nandi (73.5 per cent), Murang’a (73.3 per cent), Embu (73.1 per cent), Uasin Gishu (73.1 per cent) and Nakuru (72.9 per cent). In terms of age, the youth who fall between 18-29 years leads the chart of borrowers with 38.5 percent followed by those between 30-39 who control 28.8 percent. People aged between 40-49 percent have so far recorded a 17.5 percent borrowing rate. And, in terms of gender, more men are borrowing from the Hustler Fund compared to women at 66 per cent and 34 per cent respectively. So far, Sh31.5 billion has been disbursed, while loan repayment stands at Sh21.2 billion. The savings account now stands at Sh1.5 billion. The Government established the Financial Inclusion Fund popularly referred to as Hustler Fund to help cushion and mitigate financial shocks for this informal sector which accounts for more than 80% of the workforce and contributes over 33% of the Gross Domestic Product (GDP). The core objective of The Hustler Fund is to offer holistic financial solutions targeting people at the bottom of the pyramid. The main pillars within the financial inclusion fund are: Affordable credit, Competitive savings & Pensions products, Comprehensive insurance solutions, Access to affordable housing, Market linkages and Financial Literacy. Also read:
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