The National Assembly – Special Funds Accounts Committee has instructed the Financial Inclusion Fund, popularly known as the Hustler Fund, to submit a comprehensive list of loan defaulters.
This will include defaulter’s names, amounts owed, and telephone numbers per constituency.
What is Hustler Fund default rate?
Chaired by Fatuma Zainab (Migori), the Committee revealed that the Fund, which has received over KSh 13 billion, currently has a concerning default rate of 78%.
During the meeting, Principal Secretary Susan Mang’eni and Acting Chief Executive Officer Elizabeth Nkukuu faced questions from lawmakers regarding the Fund’s management, as highlighted by audit reports. However, the audit meeting was cut short after the Hustler Fund failed to submit evidence related to 19 outstanding audit queries for the 2022/2023 financial year.
The Committee demanded an explanation for the delay, to which Nkukuu attributed to miscommunication and a previous shortage of staff within the Fund, resulting in a reliance on guidance from the Office of the Auditor-General.
Legislators expressed concerns over the lack of qualified personnel within the Fund, questioning how it could manage Kshs. 13 billion in disbursements without adequate staffing.
“How can a fund have 13 billion to disburse but lack crucial personnel to track it?” asked Kivasu Nzioka.
Huster Fund loans not insured
In response to questions about risk management, Nkukuu also confirmed that the funds were not insured.
MP Majimbo Kalasinga also raised concerns about whether the Fund had any insurance coverage or risk management strategies in place at its inception.
Additionally, Christine Ombaka sought clarification on the measures taken for debt recovery. The Committee Chairperson, Fatuma Zainab, directed the Fund’s management to provide detailed information on the defaulters, with the Committee set to lead an inquiry to verify the accuracy of the data.
The management of the Hustler Fund is expected to appear before the Committee again to address the pending audit queries.
