MSMEs Development Principal Secretary, Susan Mang'eni, has addressed the widespread confusion surrounding Hustler Fund defaulters and their access to Social Health Authority (SHA) services.
Concerns had been raised by Kenyans that individuals who default on Hustler Fund loans would be locked out of the SHA Lipa Pole Pole programme.
Speaking on Thursday, Mang'eni clarified that defaulting on the Fund does not automatically disqualify one from accessing SHA services, although she encouraged Kenyans to repay their loans.
“So it is not true that if you have defaulted on Hustler Fund, you cannot access SHA,” Mang'eni clarified.
She explained that borrowers who have shown commitment to repaying their loan, even partially, will be allowed to continue paying in flexible terms.
“If you have been a good borrower, we give you an opportunity where if you pay for four months, then you will still have a cover for the whole year, and then the remaining amount that you are supposed to pay, you can now start paying pole pole,'' she explained.
According to Mang'eni, this approach is aimed at making both SHA and the Hustler Fund easily accessible for the Kenyans in the informal sector who are largely in micro-entrepreneurship and spending.
“If you want to benefit again from the Fund and the SHA Pole Pole, honestly, why would we give you that privilege when you have also been defaulting? So this is also to encourage them to settle what they defaulted on,” the PS continued.
Mang'eni, however, drew a clear distinction between active borrowers and those who have defaulted beyond the 45-day threshold.
“If your loan has gone unpaid for more than 45 days, then you are officially in default. And while that doesn’t bar you from SHA entirely, it affects your eligibility for the SHA Pole Pole benefit.”
The SHA Pole Pole programme was designed to allow Kenyans to pay for health insurance in small, manageable instalments through the Hustler Fund.
The government enabled Kenyans to borrow from the Hustler Fund to finance their SHA premiums, easing the burden of paying the annual contributions up front, especially for those in the informal sector. So far, Ksh71 billion has been disbursed to Kenyans through the Hustler Fund, reaching more than Ksh26 million Kenyans.
