President William Ruto has pledged an additional Ksh5 billion for the Hustler Fund in a move aimed at expanding access to affordable loans for millions of Kenyans and strengthening the government’s financial inclusion agenda.
Speaking during the Mashujaa Day celebrations on October 20, the President said the additional funding will enable more borrowers to access credit through the Financial Inclusion Fund, popularly known as the Hustler Fund, which has become a major source of financing for individuals and small businesses since its launch in 2022.
Ruto reaffirmed the government’s commitment to continue supporting the programme, sayin affordable credit remains key to empowering wananchi and boosting economic activity across the country.
The President noted that the fund has helped many Kenyans access loans without the stringent requirements often associated with conventional lending institutions.
According to Ruto, the Hustler Fund has so far disbursed about KSh90 billion to 28 million borrowers through its Personal Loan, Bridge Loan and Hustler Groups products.
Strong Demand for Affordable Credit
The latest pledge comes at a time when demand or easily accessible loans continues to rise as many Kenyans seek capital to support businesses, meet household expenses and expand income-generating activities.
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According to figures released by the government, the programme has recorded 10 million repeat borrowers, an indication that many beneficiaries continue to rely on the platform for financial support.
Of these, about 4.5 million borrowers have attained A and B credit ratings due to consistent borrowing and timely loan repayments.
Ruto said the government’s objective is not only to provide affordable financing but also to encourage responsible borrowing while helping wananchi establish positive credit histories.
The President added that the programme has demonstrated that many Kenyans are capable of repaying loans when offered fair and affordable credit facilities.
He maintained that expanding access to financing remains critical in supporting micro, small and medium-sized enterprises, which form a significant part of the country’s economy.
Hustler Fund Savings Milestone Amid Critic
According to data from the Hustler Fund Secretariat, beneficiaries had accumulated more than Ksh7 billion in savings through the programme by the latest reporting period.
The fund’s management says the savings component is intended to encourage a culture of saving among borrowers while building long-term financial resilience.
The fund operates entirely on a digital platform, with borrowing, disbursement and repayment processes conducted electronically, with the government saying the digital model has improved efficiency, lowered operational costs and enhanced accessibility for users across the country.
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Despite its growth, the Hustler Fund has faced scrutiny from auditors, lawmakers and rights groups over loan defaults, recovery challenges and governance issues.
Auditor General Nancy Gathungu has repeatedly flagged weaknesses in loan recovery, internal controls and financial reporting, while the Kenya Human Rights Commission has argued that the programme is economically unsustainable due to high default rates.
Audits have also raised concerns over loans issued to minors and individuals with questionable records in the system, as well as billions of shillings in outstanding loans whose recoverability remains uncertain.
Supporters of the programme, however, maintain that it has brought millions of Kenyans into the formal credit system and provided financing to borrowers who were previously excluded from conventional lending channels.
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