Defaulters of the hustler fund could soon have their M-Pesa accounts raided and their airtime top-ups deducted in an effort by the government to recover the funds.
Financial Inclusion Fund acting chief executive officer Elizabeth Nkukuu told MPs that the Fund, commonly known as the Hustler Fund, was exploring several options to recover the funds, including deductions of M-Pesa balances of defaulters.
Nkukuu, who appeared before the National Assembly’s Special Funds committee, said that the Fund, which has disbursed over Sh13 billion, currently has a default rate of about 78 percent.
As a result, the acting CEO argued, the Fund is currently considering various alternatives to recover the defaulted amount, which she said could be enforced in the coming months.
“We are exploring the possibility of recovering the funds from M-Pesa or airtime linked to defaulters. This is still under deliberation as we work towards securing the necessary legal provisions,” she said.
The committee, however, while questioning the CEO, asked the management of the Fund to submit a comprehensive list of loan defaulters, detailing their names, amounts owed and contact information per constituency.
This is after the legislators expressed concerns over the authenticity of the reported default figures, underscoring the need for a critical analysis of the evidence.
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Other members of the committee, also questioned the rationale of raiding the M-Pesa accounts of defaulters, with some also questioning ways through which the Fund intends to recover the defaulted funds.
Nkukuu in response, said the Fund aims to ensure that it recovers all of the Sh7 billion owed by 13 million Kenyans who have defaulted.
The committee meeting was presided over by chairperson, Fatuma Zainab who is also the Migori County woman representative.
The committee adjourned the meeting after learning that the Fund was yet to present the required documentation to the office of the Auditor-General.
Members stressed the importance of resolving the 19 outstanding audit queries. The acting CEO attributed the delays to miscommunication and a shortage of qualified staff within the Fund.
Lawmakers also questioned the Fund’s ability to manage substantial taxpayer funds without adequate personnel and raised concerns about the Fund’s lack of risk management, questioning whether the funds were insured.
The acting CEO told the committee that the money was not insured, prompting further deliberation on the need for a risk assessment to safeguard taxpayer funds.
Zainab asked the Fund’s management to submit detailed reports to the committee within two weeks.
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