Government to Track Hustler Fund Defaulters Using National ID Data

The government is preparing stricter measures to pursue borrowers who have not repaid loans from the Hustler Fund. 

Officials say new systems will use national identification records and location information provided during registration to trace defaulters. Appearing before the National Assembly’s Special Funds Accounts Committee on 5 March, Henry Tanui said the government is developing mechanisms to identify borrowers who have failed to repay. 

He explained that the loans are linked to each borrower’s national identity card, which also records personal and location details submitted during onboarding.

Tanui said these records make it possible to track individuals even if they change their phone numbers or discard the SIM cards used to access the service. 

“The loan is tied to the National ID, and that ID can give the government the geographical location where you are because during onboarding you provide your location details,” he told the committee.

Members of Parliament raised concerns about repayment levels during the session. Since the fund was launched in November 2022, borrowers have taken about KSh83 billion. Of that amount, roughly KSh71 billion has been repaid, leaving an outstanding balance of around KSh12 billion.

Lawmakers asked officials to explain how the government plans to recover the remaining funds. They noted that maintaining consistent repayments is important for the sustainability of the programme, which is intended to support small traders and individuals seeking affordable credit.

Tanui also told the committee that the Office of the Data Protection Commissioner has authorised access to records for nearly 20 million registered borrowers. He said the information will be used to strengthen monitoring and loan recovery efforts.

Despite the outstanding balance, Tanui maintained that the government has not lost money through the initiative and expects the remaining loans to be repaid.

The fund, officially known as the Financial Inclusion Fund, was introduced by William Ruto in November 2022. 

It offers microcredit at an annual interest rate of 8 percent and is widely used by Kenyans seeking capital for small businesses or personal needs.