Nairobi, July 22 -- Hustler Fund borrowers can now use Safaricom Bonga Points to repay State-backed loans as the government seeks to improve collections amid rising defaults.

The Financial Inclusion Fund (FIF), popularly known as the Hustler Fund, has notified borrowers via text messages that they can now clear outstanding loans using Safaricom's loyalty points.

The new repayment option comes as the fund grapples with a 15 percent default rate, equivalent to Sh12.5 billion, as of March.

Fund Chief Executive Officer Henry Tanui said the initiative had already recovered Sh3 million within its first week.

"The idea is that if there are other convenient options for borrowers to repay, then we should make them available," Mr Tanui told Bus...