At least 800,000 Kenyans are behind payment of the Hustler fund loans.

President William Ruto on Friday said that the defaulters were behind schedule in terms of repaying the loan.

"About 800, 000 are behind schedule in payment but it is my hope that they will refund to be able to pay more," he said.

Giving an update on the Hustler fund, Ruto said that up to February 3, 2023, 18 million Kenyans have registered with the Hustler Fund.

The Hustler Fund is specifically designed to support small-scale traders in the country.

It comprises four products: personal, micro business, SME and start-up loans.

To access the fund, Kenyans can dial *254# on their mobile phones.

President Ruto had warned borrowers against defaulting with the State issuing strict measures to curb the same.

Those who default on the loans will see their interest rates increase from 8 per cent to 9.5 per cent.

If a customer will not have paid the loans within the required time, they will be added an extra 15 days, before the increment of the interest rate. 

The borrowers who default will also have their Hustler Fund account frozen. 

"After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen," he said.

Ruto said loan defaulters will not be listed on CRBs, as they will have another chance of reborrowing.