Hustler fund defaulters blocked from getting NYOTA money

9 million Kenyans who have defaulted on loans from the Hustler Fund will not benefit from government’s new National Youth Opportunities towards Advancement (NYOTA) funds. 

On Monday, Principal Secretaries from various ministries were sent to their respective counties to drum up support for NYOTA, a financial empowerment project by the Government of Kenya in partnership with the World Bank.

Through the NYOTA initiative, the government aims to support the creation of 100,000 youth-led enterprises with up to 70 young people in all 1450 wards set to get Ksh.50,000 in grants. 

However, those who are yet to pay their Hustler Fund loans will not be eligible. 

During a grassroots sensitization forum at Maasai National Technical Institute in Kajiado County, Irrigation PS Ephantus Kimotho urged youths and people living with disabilities to seize the opportunity.

He said the hustler funds defaulters will be knocked out and after the applications validation 70 youths will be considered from each of the 25 wards in Kajiado.

“They are going to go through a long process of verification, which will start by applying,” Kimotho said, adding “those who have some debts with Hustler Fund may not qualify.” 

At the same time, Social Protection PS Joseph Montari told Migori residents that Hustler Fund defaulters will not benefit from NYOTA as they have proven that they cannot be trusted with the fund. 

“You were not able to repay because you went away with money. Please clear your Hustler Fund, you have to be in good standing,” Montari said. 

In the first phase 24,000 youths in Kajiado but 17,000 youths did not qualify but at the end only 318 youths were reachable to sit for the test.

Launched after President William Ruto assumed office in 2022, the Hustler Fund has experienced challenges of uncollected debts. 

On September 12, State Department of Micro, Small and Medium Enterprises Development PS Susan Mang’eni, said the total default amount was Ksh.5 billion. 

PS Mang’eni said borrowers who have purposefully refused to pay the loan acquired three years ago will not have access to other government credit facilities such as the Social Health Authority (SHA) Lipa Pole Pole.