Borrowers on the State-backed financial inclusion fund, popular as Hustler Fund, are defaulting on payments at a higher rate than those at commercial banks, saccos and microfinance banks, mirroring the headache mobile lenders face advancing unsecured loans to the informal sector.
Out of the Hustler Fund’s outstanding Sh10.2 billion worth of loans, 29 percent is deemed to be portfolio-at-risk, implying it has not been serviced by the borrowers as per the agreed schedule.
