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Hustler Fund ordered to reveal names of loan defaulters

The National Assembly’s Special Funds Accounts Committee has 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.

“How can a fund have 13 billion to disburse but lack crucial personnel to track it?” asked Kivasu Nzioka.

Addressing risk management concerns, kukuu admitted that the funds were not insured, responding to inquiries by Majimbo Kalasinga, who questioned the existence of any risk management strategies when the Fund was established.

Christine Ombaka also sought details on the mechanisms in place for debt recovery, given the high rate of loan defaults.

In response, Committee Chairperson Hon. Fatuma Zainab directed the Fund’s management to submit detailed information on the defaulters as part of an inquiry to verify the data’s accuracy.

The Hustler Fund’s officials are expected to reappear before the Committee to address the unresolved audit queries.

The post Hustler Fund ordered to reveal names of loan defaulters first appeared on KBC.

The post Hustler Fund ordered to reveal names of loan defaulters appeared first on KBC.

 

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