Wamuzi News Ke
Kenya’s government has issued a stark warning: anyone who has defaulted on their Hustler Fund loan will be ineligible for its new NYOTA grants. This move, confirmed by Principal Secretary Aurelia Chepkirui Rono on October 6, is already heightening fears among borrowers struggling with repayment.
What’s Going On.
During the launch of the NYOTA programme in Bomet County, PS Rono stated that those who haven’t repaid their Hustler Fund loans have “bad credit reports” and won’t qualify for new financial support under NYOTA. The NYOTA programme aims to give entrepreneurs a startup grant of Ksh 50,000. But Rono made it clear that defaulting on prior loans disqualifies applicants.
“If this money is given and not returned, your credit will count against you,” she said.
Why It’s Explosive.
Hustler Fund, launched in 2022, was supposed to financially uplift small businesses, traders, boda-boda operators, and others excluded from formal banking. It was pitched as affordable credit to unlock opportunity. However, repayment challenges have plagued the fund. Default rates are high, and the government has already taken steps to encourage repayment through punitive measures.
Implications & Fallout.
Many borrowers who are already stretched thin could lose access not just to NYOTA grants, but to any future government-assisted programmes that assess creditworthiness.The decision places extreme pressure on defaulters to clear debts if they want to benefit from upcoming schemes, which now hinges on good repayment records.
Financially vulnerable Kenyans — particularly those in informal sectors with inconsistent income — risk being shut out completely.
Government’s Justification.
PS Rono emphasized that repayment discipline is necessary for sustainability: “This is taxpayer’s money; we must use it responsibly.” Failure to repay, she said, undermines public trust and drains resources. Moreover, defaulters are seen as jeopardizing the ability of the fund to support more people, pushing the government to tighten accountability and enforcement.
