Oparanya: Hustler Fund defaulters may not access other loans from banks

Defaulters of the Hustler Fund loans would be listed with the credit reference bureaus to deny them an opportunity to borrow from other financial institutions until they clear their debts.

Cooperative and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya said the defaulters will be barred from accessing loans from commercial banks.

He was addressing the third Kenya Public-Private Sector MSMEs dialogue forum, dubbed MSMEs Connect, held at the Tononoka Social Hall in Mombasa County early in the week.

The programme provides a platform for the national government and private sector, including MSMEs, to engage and focus on growing businesses and facilitate access to markets.

On Tuesday, the CS announced that the Hustler Fund has so far lent a total of Sh70 billion to 26 million Kenyans, adding that those with good credit ratings can borrow up to Sh150,000 at an interest rate of eight per cent.

"If you default on the Hustler Fund loan and run to commercial banks, they will find out your credit rating and deny you a loan," he warned.

According to Oparanya, the government was still the avenue for MSMEs to access funds to grow their businesses, as the commercial banks' lowest interest rate stands at 17 per cent.

Oparanya noted that, of the government funds, only the Kenya Industrial Estates requires collateral because it can lend up to Sh20 million. MSMEs exhibited various products and innovations during the forum.