Hustler Fund Defaults Hit Sh3 Billion in Nine Months

[kneegrow04]

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A poorly conceived idea, a populist policy, was bound to fail from get go.

How about channelling the money to already registered, structured and regulated saccos at the village level to disburse the money to existing members, crowd-in new members and charge a small interest on the loan AFTER one has become a full member, for say, three months?  Kisii county has done well in this regard. Getting nearly 400m in under seven months through her registered saccos.

Alternatively use the  money to cushion the middle class to prevent them from slipping into the " begging bracket'. As things stand, the kenyan middle-class is a hopeless lot staring at poverty approaching from the horizon.

Heck, if KK has no tangible plan, how about just donating the money to the ageing population for free?  Raise the stipend from the current 2k to 4 k instead of giving the money to Babu Owino to buy condoms  .

https://www.businessdailyafrica.com/bd/economy/hustler-fund-defaults-hit-sh3-billion-in-nine-months--4342580#google_vignette

[Kadudu]

The problem is people borrow the cash to meet their immediate requirements and  not to generate income. So if a huslter borrows 500 Ksh and buys unga and mrenda for the evening and the next day he makes no income, he will most likely never pay it back. Banks or any financial instituition would never lend you cash to meet your immediate needs. 30% non-payment will eventually lead to a collapse of the fund. The fund cannot drive in the equivalent of 30% profit in a year. That is mission impossible.
Lesson learnt, the government should keep off business and let business be done by individuals ready to take their personal risk.

[Georgesoros]

My cousin called last week, needs 70k loan. told her dont have it. i can do 15k.
Hope she is able to pay hustler fund.

[gout]

The Fuiza model was/is way to go for the Fund.

[kneegrow04]

Fuliza way still can't work for the fund. GoK doesn't have a teclo line like safaricom. Folks will borrow once then move on. It is for this reason that even safaricom restricted folks NOT operate more than two MPESA lines. Bottom-line, Kadudu mentioned earlier on this post....GoK should leave business to business-men. Outsource the service to Saccos.

The Fuiza model was/is way to go for the Fund.

[gout]

Serikali is majority shareholder of Safaricom. 35% directly and rest by ordinary Kenyans. Just unwillingness to kick NCBA away from the Fuliza teat.

Fuliza way still can't work for the fund. GoK doesn't have a teclo line like safaricom. Folks will borrow once then move on. It is for this reason that even safaricom restricted folks NOT operate more than two MPESA lines. Bottom-line, Kadudu mentioned earlier on this post....GoK should leave business to business-men. Outsource the service to Saccos.

The Fuiza model was/is way to go for the Fund.

[Githunguri]

Who are the defaulters?Can we have audited accounts?I think the amount stolen has been more than the amount defaulted.

[Kadudu]

It seems you have never heard of Vodacom and Vodafone.

Our shareholding structure changed during the year and is currently comprised of the Government of Kenya (35 per cent), Vodacom (35 per cent), Vodafone (5 per cent) and free ?oat (25 per cent).

https://www.safaricom.co.ke/sustainabilityreport_2018/stakeholder-engagement/shareholders/

Serikali is majority shareholder of Safaricom. 35% directly and rest by ordinary Kenyans. Just unwillingness to kick NCBA away from the Fuliza teat.

[Georgesoros]

Fuliza way still can't work for the fund. GoK doesn't have a teclo line like safaricom. Folks will borrow once then move on. It is for this reason that even safaricom restricted folks NOT operate more than two MPESA lines. Bottom-line, Kadudu mentioned earlier on this post....GoK should leave business to business-men. Outsource the service to Saccos.

The Fuiza model was/is way to go for the Fund.

Agreed. Put out the money but let businesses administer it.
I think it was a good idea that was poorly exwcuted

[gout]

What other businesses rather than government controlled Safaricom and KCB on top of algorithms?
 

Agreed. Put out the money but let businesses administer it.
I think it was a good idea that was poorly exwcuted

[Georgesoros]

What other businesses rather than government controlled Safaricom and KCB on top of algorithms?
 

Agreed. Put out the money but let businesses administer it.
I think it was a good idea that was poorly exwcuted

KCB, SAFARICOM, OTHER BANKS