Kenya, March 5 -- A serious report from the Auditor General shows that about Sh8 billion given out through the government-supported Hustler Fund may not be paid back. The report says that 64% of the people who took loans from this fund have not repaid them.
These findings, released on Monday, raised worries about how the fund is managed. The Hustler Fund was created to help small businesses and people with low incomes get loans at affordable rates.
The report also pointed out several problems with how the loans were given out. More than 880,000 loans were given to the same borrowers multiple times, which raises doubts about how the fund checks who can get a loan.
In a shocking discovery, some loans were given to borrowers who are underage, while others were dated in the future, which goes against the fund's rules.
Furthermore, the Auditor General noted that Sh401 million in expenses were labeled as "unclear" because there was not enough paperwork to explain how the money was spent.
These issues have led to concerns about possible mismanagement or misuse of the fund, which was meant to support Kenya's small businesses.
So far, government officials have not commented on the report, but its findings will likely lead to increased scrutiny of how the Hustler Fund is run.
Critics have been saying for some time that the program does not have enough protections to ensure that loans are repaid and to prevent misuse.
As people wait for more information, the Auditor General has called for urgent changes to improve accountability and protect public money.
This report has also restarted discussions about whether government-backed micro-loan programs can effectively help with Kenya's economic problems.
Published by HT Digital Content Services with permission from Bana Kenya.