Hustler Fund Should Be Disbanded: Ruto Critic
This substantial default rate has prompted the government to explore the option of a write-off.
Viral Tea Ke Writer 
Democratic Action Party of Kenya (DAP-K) party leader Eugene Wamalwa has called for the Hustler Fund to be abolished. This comes after reports emerged that the Hustler Fund lost Ksh 6 billion borrowed by over 10 million Kenyans in 2022.
Wamalwa, in a statement on his X account on Thursday, May 22, claimed that the Hustler Fund, administratively also known as the Financial Inclusion Fund, was designed to loot public coffers without following the required legal procedures.
"The Opaque Hustler Fund that was designed to siphon funds from public coffers without any proper legislative, policy and institutional framework to ensure proper oversight and accountability, should be scrapped and no more good money should be thrown after bad money!" he urged.
Democratic Action Party of Kenya (DAP-K) leader Eugene Wamalwa speaking during a past event. /THE STAR
Appearing before the National Assembly Committee on Trade, Industry, and Cooperatives, PS Mang'eni revealed that a significant number of borrowers, estimated at 10 million Kenyans, have failed to repay their loans since the fund's inception over two years ago.
This substantial default rate has prompted the government to explore the option of a write-off.
“They never repaid, and that's what we will be seeking to write off. The portfolio that is totally at risk and is in default is between Ksh5 billion and Ksh6 billion,” said Mang’eni.
The MSMEs PS, however, revealed that the government will institute mechanisms to try and recover the loans.
“Since we had graded these people, we are going to institute a mechanism of recovery through incentives and certain sanctions, like locking them from accessing other enhanced opportunities.
“If we were to do forceful recovery again, the challenge will be the law, so we are looking at the law to see at what point we will introduce forceful recovery,” she stated.
PS Mang’eni backed the fund’s performance, pointing out that 9 million borrowers are still actively repaying their loans.
She also noted that the government has distributed Ksh65.7 billion to citizens so far, with Ksh53.2 billion already paid back. Additionally, Mang’eni urged the National Assembly to approve an extra Ksh5 billion for the fund in the 2025/2026 budget.
“Those who are doing better, we have to enhance their limits, and the moment we enhance someone's limit, you have to fund, and that is the reason why we are asking for additional funding,” she added.
Launched on November 30, 2022, the Hustler Fund is a key component of President Ruto's initiative aimed at helping Kenyans lift themselves out of poverty. It has been offering loans from a minimum of Ksh500 to as high as Ksh50,000 at an eight per cent pro-rated basis or a daily rate of 0.002 per cent.
The primary goal of the Hustler Fund is to support individuals in the informal sector in integrating into the formal financial system, a vital step toward long-term economic empowerment.
On December 9, 2024, President Ruto announced an increase in the Hustler Fund loan limit for more than two million borrowers. The Hustler Fund has had its borrowing limit increased in response to public demand.
President William Ruto being taken through how to access the Hustler Fund during its launch on November 30, 2022. /PCS
