Govt Slams Report On Scrapping Hustler Fund In 5-Page Statement
Cabinet Secretary Wycliffe Oparanya emphasized that the KHRC report was based on the Fund's performance during its first seven months of operation in the 2022/2023 financial year
Marvin Chege 
The Ministry of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development has issued a strong rebuttal against a recent report by the Kenya Human Rights Commission (KHRC) that criticized the performance of the Hustler Fund.
In a four and a half page press statement to newsrooms released on Monday, August 4, the Ministry termed the report as "elitist, skewed, and politically motivated," arguing that it relied on outdated data and ignored the Fund's significant achievements over the past two-and-a-half years.
Cabinet Secretary Wycliffe Oparanya emphasized that the KHRC report was based on the Fund's performance during its first seven months of operation in the 2022/2023 financial year, a period he described as too short to draw meaningful conclusions.
Oparranya further accused the commission of failing to consult the Ministry or the Fund's management before publishing its findings, which he said violated professional ethical standards. The timing of the report's release, coinciding with the anniversary of the 2024 Finance Bill protests, further raised suspicions about its motives, with the Ministry suggesting it was intended to incite public opposition to the government's reforms.
CS Wycliffe Oparanya and PS Susan Mang'eni during a press conference on August 4, 2025. /MINISTRY OF COOPERATIVES
"As the ministry in charge of the implementation of the Fund, we were never approached, and we have since confirmed from the management of the Fund that they too, were not approached to respond or give clarity to all the claims and nuances that have come out of the study. If the NGO was genuine in its pursuits, they would at the least have adhered to the professional ethical standards that govern such studies," Oparanya stated in part.
The Ministry provided detailed statistics to counter the KHRC's claims, highlighting the Hustler Fund's widespread accessibility and impact. According to the statement, the Fund has reached 26 million Kenyans through the *254# mobile platform, with 9 million borrowers accessing loans regularly.
It added that the total disbursement to date stands at Ksh72 billion, including Ksh68 million daily in personal loans and Ksh27 million in bridge loans. Repayments have exceeded Ksh60 billion, while the mandatory 5 per cent savings component has mobilized Ksh5 billion, fostering a culture of financial prudence among beneficiaries.
Addressing specific criticisms, the Ministry refuted claims that the Fund offers limited loan amounts, clarifying that borrowers with good credit behavior can access up to Ksh150,000 under the Bridge Loan product.
It also defended the 14-day credit period, stating that it aligns with market standards and serves as a corrective mechanism for Kenya's digital lending landscape.
Additionally, the Ministry underscored the Fund's role in rehabilitating borrowers previously blacklisted by Credit Reference Bureaus (CRBs), providing them with a second chance to rebuild their financial standing post-COVID.
In closing, the Ministry reaffirmed the Hustler Fund's success in promoting financial inclusion and supporting small businesses, particularly in agriculture, where it has outperformed traditional lenders like the Agricultural Finance Corporation (AFC).
"It is therefore prematurely erroneous for the NGO to publish a skewed report devoid of facts and whose motive is to incite the public against the administration.
"We wonder which human rights they are defending if they demand the scrapping of the Fund based on its nascent experience. Who defends the over 9 million beneficiaries who borrow from the Fund regularly?" Oparanya posed.
KHRC, in its report titled "Failing the Hustlers" argued that the fund was structurally flawed, fiscally reckless, and riddled with governance gaps. It recommended the immediate scrapping of the programme, warning that continued public investment in the fund amounts to throwing good money after bad.
Launched in November 2022 with a seed capital of Ksh50 billion, the Hustler Fund was marketed as a flagship pillar of the Kenya Kwanza administration’s "bottom-up" economic transformation agenda.
