Borrowers of Hustler Fund, are defaulting on payments at a higher rate than those at commercial banks, saccos and microfinance banks.
Out of the Hustler Fund’s outstanding Sh10.2 billion worth of loans, 29 percent is deemed to be portfolio-at-risk, implying it has not been serviced by the borrowers as per the agreed schedule.
This means that borrowed amounts worth about Sh2.9 billion in Hustler Fund loans fall in the category of non-performing loans.
The fund started operations at the end of November 2022, advancing personal loans as low as Sh500.
In the banking sector, the overall ratio of non-performing loans to loan book (NPL ratio) stood at 14.5 percent at the end of June 2023, although the lenders do not segregate their loan book to show the share of mobile loans.