Hustler Fund on Track: Gov’t Dismisses Misuse Claims, Highlights Progress
The Kenyan government has defended the operations and finances of the Hustler Fund, reaffirming its commitment to expanding credit access for low-income earners, and rejecting claims of misuse of Ksh. 8 billion in matching funds.
Principal Secretary for MSMEs Susan Mang’eni issued the statement on Wednesday, addressing concerns raised by recent media reports and a parliamentary audit. She clarified that the Ksh. 8 billion allocated for matching long-term savings under the Hustler Fund was never released by the National Treasury during the 2022/2023 fiscal year.
“The Ksh. 8 billion in question, which had been allocated as counterpart funding to match the long-term savings of the Hustler Fund, was NOT drawn down from the National Treasury,” Mang’eni stated.
She explained that by June 30, 2023, the matching savings product was still under development. “It would have been imprudent for the Fund to draw down the money only to idle in commercial banks,” she said.
The savings product was finalized in November 2023, during the Fund’s first anniversary, when the first official matching was carried out.
Mang’eni confirmed that the Fund had received an initial Ksh. 20.2 billion in capital. Of this, Ksh. 12 billion was designated for lending, while Ksh. 8 billion was reserved for matching savings. An additional Ksh. 200 million supported administrative operations, as outlined in the Public Finance Management (Financial Inclusion Fund) Regulations 2022.
Parliament’s Public Accounts Committee has given the Fund two weeks to provide full documentation regarding the use of allocated funds. Mang’eni assured the public that all requested information will be delivered within the deadline.
Since its launch on November 30, 2022, the Hustler Fund has disbursed Ksh. 71 billion to over 26 million Kenyans through personal, group, and bridge loan products. The program has mobilized Ksh. 4.8 billion in savings, both voluntary and mandatory.
Mang’eni said the Fund’s behavioral credit rating model has brought visibility to borrowers’ credit profiles. The system groups borrowers into nine bands, ranging from A1 to C3. Over 4.5 million of the Fund’s 9 million repeat customers currently fall within the A and B bands, signaling positive repayment habits.
She noted that the bridge loan product introduced in late 2023 is being upgraded. Borrowers with good repayment records will now access higher limits and a 30-day repayment period. The goal is to help borrowers transition into formal banking relationships, enabling long-term business financing through mainstream lenders.
Mang’eni reiterated the government’s focus on reaching underserved Kenyans. “The Fund remains committed to deepening financial and credit inclusion among the most vulnerable segments of the economy,” she said.
The Hustler Fund, a flagship initiative of President William Ruto’s administration, aims to close credit gaps for Kenyans traditionally locked out of the financial system. The government says it will continue to roll out products tailored to this demographic.
