NAIROBI — Every day, millions of Kenyans dip into Fuliza to make ends meet. The mobile overdraft service—run by NCBA, KCB, and Safaricom—disbursed KSh 834 billion in 2024, with users borrowing KSh 2.3 billion daily just to stay afloat.
But there’s another player in town: the Hustler Fund, President William Ruto’s flagship programme aimed at empowering low-income earners and micro-entrepreneurs with affordable loans.
Both are meant to provide access to quick money. But they tell two very different stories about what it means to borrow in Kenya today.
“Fuliza is for survival. The Hustler Fund is supposed to be for growth,” says Nairobi-based economist Caroline Mutua. “But in reality, Kenyans are using both just to get by.”
Fuliza: A Lifeline with a Price
Introduced in 2019, Fuliza allows M-Pesa users to complete transactions even when they lack sufficient funds. It’s backed by a 40:40:20 partnership between NCBA, KCB, and Safaricom.
The appeal is clear: it’s instant, convenient, and almost invisible. But it comes at a cost. Fuliza automatically deducts repayments from incoming M-Pesa funds, often before users can buy food or pay rent.
“My account is always negative,” says Mary Wanjiku, a fruit vendor. “The moment someone sends me money, Fuliza takes it. I’m always starting at zero.”
Despite a 95–98% repayment rate, critics say Fuliza can trap users in a cycle of daily debt.
The Hustler Fund: Ambition Meets Reality
Launched with fanfare in late 2022, the Hustler Fund promised low-interest loans to small business owners and the unemployed—part of President Ruto’s “bottom-up” economic agenda.
Unlike Fuliza, the Hustler Fund was meant to spur productive borrowing—to buy stock, open kiosks, or invest in side hustles. Interest rates were capped at 8%, far lower than commercial digital lenders.
But uptake has been mixed. Many borrowers take out the minimum amount—KSh 500 or 1,000—and struggle to grow it.
“The idea was noble,” says Mutua. “But the reality is, people are using the Hustler Fund the same way they use Fuliza—for emergencies and bills.”
According to government reports, defaults have increased, raising concerns over sustainability.
Two Systems, One Struggle
While Fuliza is privately run and profit-driven, the Hustler Fund is publicly funded and politically charged. Yet both tap into the same truth: millions of Kenyans are borrowing just to survive.
“It’s not about which is better,” says financial consultant David Mwangi. “It’s about why so many people need either at all. That’s the real crisis.”
As inflation bites and formal job growth stalls, digital lending continues to soar. The Central Bank of Kenya has moved to regulate mobile lenders more closely, but consumer advocates want more.
They’re calling for clearer terms, limits on daily borrowing, and targeted financial education—not just in schools, but in marketplaces and matatu queues.
“People are not lazy or reckless,” says Wanjiku. “We’re just trying to make it to tomorrow.”
Final Thought:
Whether it’s Fuliza’s overdraft or the Hustler Fund’s microloan, the message is the same: Kenyans are borrowing not for luxury—but for survival. The challenge now is to build systems that empower them, not entrap them.
