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Message: [QUOTE="Nehanda, post: 23050, member: 2262"] Kenya's Small-Loan Program Hits Hard Times as Defaults Rise. The Kenyan government's Hustler Fund saw its money drop by 93 percent this year. A new report shows the fund gave out just 800 million shillings, down from 12 billion last year. The fund started strong. It helped many small business owners get loans through their phones. The success made officials ask for 22 billion shillings more, but they got much less—only 5 billion shillings. By mid-2023, the fund had given 36 billion shillings to 22 million people. But most never paid back their loans. Cabinet Secretary Wycliffe Oparanya said 19 million people failed to return the money. That means 9 out of 10 borrowers kept the cash. "I am coming for you," Oparanya told the people who didn't pay. President William Ruto backed him up. "The Hustler Fund is not free," Ruto said. He wants every shilling back. The program started smaller than promised. Ruto's team first said they would contribute 50 billion shillings each year, but they cut that to 20 billion after they won power. They blamed money limits set by the IMF. The fund helps poor Kenyans who can't use regular banks. It gives loans from 500 to 50,000 shillings right to their phones. When someone borrows, they get 95 percent of the money. The rest goes into savings and a pension plan. The government adds some money to the pension, up to 3,000 shillings yearly. But the fund keeps shrinking. After two years, it has only given out 12.8 billion shillings. Bad loans pile up. The government can't get its money back. What started as hope for small business owners has turned into a headache for Kenya's leaders. [/QUOTE]

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