By Sharon Nabiye
The Kenyan government’s recent proposal to write off KSh 6 billion in Hustler Fund debt has elicited a range of reactions across Bungoma County, with many residents expressing both relief and apprehension regarding the future of the ambitious financial inclusion program. While the move offers a lifeline to countless citizens struggling with repayments, it has also sparked concerns about fostering a culture of default and the long-term sustainability of the fund.
A prevailing sentiment among Bungoma residents is that many defaulted on their Hustler Fund loans due to a significant lack of financial literacy and a widespread misconception that the money was a free handout. “Everyone thought it was free money,” lamented one local entrepreneur. “Some borrowed without a clear idea of how to use the money, while others spent it on personal needs rather than investing in income-generating ventures.”
The government’s proposition to inject another KSh 5 billion into the fund, while seemingly beneficial, is viewed with caution by many. Mr. Mang’oli Maurice, a resident of Bungoma County, articulated a common concern: “Personally, would not consider borrowing again unless the government offers training on financial management and ensures transparency in how the loans are administered and gives out moderate amounts.” His statement highlights a critical need for structural improvements to the program beyond just debt relief.
Bungoma residents are urging the government to prioritize responsibility and implement robust measures to improve repayment rates. Suggestions from the community include comprehensive financial literacy trainings, a sentiment echoed by many who believe that equipping borrowers with the knowledge to manage their finances is paramount. “To improve repayment rates,” one resident suggested, “the government should conduct financial literacy trainings, implement strict follow-up mechanisms similar to ‘Fuliza’ where the amount taken is deducted partially via M-Pesa, and give a grace period that will help people repay the debt and should be monitored strictly.”
There’s a strong call for the Hustler Fund to transcend its current perception as a political tool and evolve into a truly impactful instrument for economic empowerment. “With proper implementation,” another resident emphasized, “the Hustler Fund could be a valuable tool for economic empowerment rather than a political gimmick.” The desire for transparency, accountability, and a focus on sustainable growth is palpable among the people of Bungoma, who hope that the lessons learned from the initial rollout will pave the way for a more effective and beneficial Hustler Fund in the future.
