NAIROBI — The Kenya Human Rights Commission (KHRC) is calling for the immediate disbandment of the Ksh 74 billion Hustler Fund, accusing it of failing to deliver meaningful economic benefits and operating under an opaque structure that has undermined its credibility.
The appeal follows a new report by the commission titled Failing the Hustlers, which outlines deep flaws in the fund’s design, management, and outcomes. Launched in November 2022 by President William Ruto, the Hustler Fund aimed to expand access to affordable credit and promote financial inclusion. But KHRC says the fund has instead exposed borrowers to unrealistic repayment conditions, poor financial returns, and mismanagement of public resources.
“The Hustler Fund has not achieved financial inclusion or real empowerment for the ordinary Kenyan,” the KHRC said in its statement.
Government records show that as of July 2025, the fund has disbursed Ksh 73.9 billion in loans, including Ksh 67.5 billion to 26.25 million individuals, Ksh 6.2 billion in bridge loans to over 600,000 borrowers, and Ksh 196.6 million to nearly 59,000 community groups. The same data reports Ksh 3.3 billion saved by borrowers through the platform.
But KHRC warns the structure is fundamentally flawed. The commission cites a 68.3% loan default rate and a net financial loss of 71.5% as indicators of failed outcomes. It further flags poorly designed loan products typically between Ksh 500 and Ksh 1,000 and a 14-day repayment window as unfit for genuine business needs.
“This program is not supporting entrepreneurship. It is built on political optics, not sound policy,” KHRC stated. “The amounts lent out are too small to start or expand any meaningful business. The repayment terms are unrealistic. The savings feature is misunderstood and misused.”
The report also highlights serious transparency concerns. The Office of the Auditor General (OAG) has not issued a clear audit opinion, citing gaps in documentation, unsupported financial entries, and a lack of clarity on how loans are distributed across counties and sectors. There is no publicly available framework for how the fund’s performance is measured.
KHRC further criticized what it described as a politicized rollout of the initiative, claiming it has been used more as a tool for political messaging than as a sustainable credit solution.
“The perception that the Hustler Fund is a handout has eroded repayment discipline,” the report said. “This destroys any hope for long-term financial literacy and responsible lending in the public sector.”
KHRC now wants the government to shut down the Hustler Fund and redirect its remaining resources to better-structured public lending programs, including the Women Enterprise Fund, Youth Enterprise Development Fund (YEDF), and Uwezo Fund.
“The government must embed all lending schemes within financial training, market access support, and a phased loan model based on performance and capacity,” KHRC advised.
President Ruto’s administration has yet to respond to the commission’s recommendations. However, with default rates climbing and audit issues unresolved, scrutiny around the Hustler Fund continues to grow.
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