The government has responded to the directive by the National Assembly Special Funds and Accounts Committee on Tuesday that called for the Ministry of Cooperatives and MSMEs to furnish its members with data on defaulters.
While issuing the directive, the Committee directed Cooperatives Principal Secretary Susan Mang’eni to provide a list containing the defaulters’ names, amounts owed, and telephone numbers per constituency.
The Committee believes the details will help in verifying the accuracy of the details provided by the borrowers during registration.
Responding to the Committee, the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs) through PS Susan Mang’eni turned down the committee’s request on Wednesday, revealing that the government will adhere to data protection laws .
President William Ruto registering for the Hustler Fund on November 30, 2022, as Prime Cabinet Secretary Musalia Mudavadi and Vincent Mutua (Chipukeezy) look on.
PCS
“The default recovery measures under consideration will be in line with laws of Kenya and particularly in strict adherence to data protection laws”, PS Susan said in a statement.
In Kenya, the right to privacy is enshrined in the Constitution, under Article 31.
The PS also denied the Committee’s stance that in a recent disbursement, the Fund had a 78 percent default rate. Led by Migori Town MP Fatuma Zainab, the Accounts Committee alleged that the number of defaulters had increased.
“Since inception, the Fund has disbursed loans amounting to more than Ksh 57.8 billion out of which ksh45.5 billion has been repaid.” The PS said.
PS Susan clarified that the Hustler fund should not be treated as the banks and mobile money wallets since the fund is not offered as part of intermediaries financial product portfolio but rather as a service from the intermediaries to the Fund.
The PS also clarified that Fund is fully government-owned and operates under Kenyan law.
“The Fund is fully owned by the government and implemented in adherence to the laws of Kenya. The Hustler Fund clients belong to the Fund and not the intermediaries.”
The government has however called upon all defaulters to repay their loans to enable the Fund replenish its reserves, grow and dish out loans to other deserving Kenyans.
“We also encourage Kenyans to repay their loans on time to build their credit score for higher loan limit access”, the statement continued.
DP Rigathi Gachagua enjoys roast maize during the launch of the Hustler Fund at the Green Park terminus on Wednesday, November 30, 2022
Kenyans.co.ke
Ivy Nyawira
