The Government has said that it will comply with data protection laws in plans to recover Ksh 7 billion from 13 million Hustler Fund loan defaulters.
While encouraging Kenyans to repay their Hustler Fund dues, Susan Mang’eni, the Principal Secretary in the Ministry of Co-operatives and Micro Small and Medium Enterprises (MSMEs) Development assured Kenyans that the recovery measures would strictly be in line with data protection laws.
“We wish to assure Kenyans that the Government remains committed to the adherence of data protection laws and default recovery measures will be within the law. We also encourage Kenyans to repay their loans on time to build their individual credit score for higher limit access,” PS Mang’eni said.
The development comes after the National Assembly’s Special Funds Accounts Committee ordered the Financial Inclusion Fund, commonly known as the Hustler Fund, to provide a detailed list of loan defaulters, including their names, amounts owed, and telephone numbers, categorized by constituency.
Chaired by Fatuma Zainab (Migori Women Rep), the Committee expressed serious concerns about the Fund’s management, noting that despite receiving over Ksh 13 billion, the default rate has surged to an alarming 78 per cent.
During a recent session, lawmakers grilled Principal Secretary Susan Mang’eni and Acting Chief Executive Officer Elizabeth Nkukuu over audit issues related to the Fund’s operations.
The session, however, was abruptly cut short as the Hustler Fund failed to provide crucial documents pertaining to 19 outstanding audit queries for the 2022/2023 financial year.
The Committee demanded an explanation for the delay, and Nkukuu cited a shortage of staff and a reliance on guidance from the Office of the Auditor-General as contributing factors.
Legislators voiced scepticism regarding the Fund’s staffing inadequacies, questioning how it managed to disburse Ksh 13 billion without adequate personnel to monitor these transactions effectively.
By Muraya Kamunde