State to Raid M-Pesa and Airtime of Hustler Fund Defaulters in Sh7 Billion Recovery
The Kenyan government is stepping up its efforts to recover Sh7 billion from defaulters of the Hustler Fund by raiding their M-Pesa accounts.
This move is part of an aggressive strategy to ensure the Financial Inclusion Fund remains sustainable amid growing concerns about non-repayment.
Acting CEO of the Financial Inclusion Fund, Elizabeth Nkukuu, revealed to the National Assembly’s Special Funds Account Committee that the majority of the defaulters borrowed in the first two months following the fund’s launch and have since refused to repay.
“They are mostly people who borrowed in the first and second months, and the default amount is about Sh7 billion,” Nkukuu explained during her appearance before the committee chaired by Migori Woman Representative Fatuma Mohammed. “What we are looking at is to get money from their M-Pesa or airtime. We are in the process of considering appropriate legal provisions,” she added.
Nkukuu emphasized that many of these defaulters are not financially struggling but are deliberately avoiding repayment. “The beauty of this fund is that we have the phone numbers and unique identifiers, like national IDs, of the defaulters. They are people of means who just don’t want to repay,” she said.
Despite constant reminders and notifications sent to the defaulters, the recovery efforts have hit a dead end. Most of the defaulters, Nkukuu pointed out, continue to transact an average of Sh21,000 monthly on mobile money platforms, indicating their ability to repay.
Lawmakers, however, raised concerns about the fund’s management, particularly regarding the insurance of the billions lent to Kenyans. MP Majimbo Kalasinga of Kabuchai and North Imenti’s Rahim Dawood questioned why billions of taxpayers’ money had been given out without proper insurance measures in place.
“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 that are not insured?” Kalasinga asked.
Nkukuu admitted that the money had not been insured and this lack of coverage was part of the reason behind the stringent recovery methods. “The money is not insured; that is why we are resorting to forceful recovery,” she confirmed.
The committee directed the fund’s officials to provide a detailed list of all 13 million defaulters within two weeks.
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State to Raid M-Pesa and Airtime of Hustler Fund Defaulters in Sh7 Billion Recovery
