The government is set to write off Sh6 billion in defaulted Hustler Fund loans while seeking an additional Sh5 billion to sustain the initiative.
Appearing before the National Assembly’s Committee on Trade, Industry, and Cooperatives, Micro, Small, and Medium Enterprises Development on Wednesday, May 21, 2025, Principal Secretary Susan Mang’eni revealed that 10 million borrowers who took loans in 2022 have failed to repay.
Despite this, she defended the fund’s performance, noting that 9 million borrowers remain active and continue to repay their loans.
Mang’eni urged MPs to approve the additional funding, arguing that it would help increase loan limits for reliable borrowers and accommodate new applicants.
However, lawmakers expressed concerns over the fund’s sustainability, questioning whether injecting more taxpayer money into a struggling program was wise.
The Hustler Fund, launched as a flagship project under President William Ruto, was designed to provide affordable credit to small-scale entrepreneurs.
Since its inception, Sh65.7 billion has been disbursed, with Sh53.2 billion repaid.
With mounting defaults, the government is now considering legal changes to enforce loan recovery measures.
MPs have warned that continued losses could deepen Kenya’s financial strain, urging stricter oversight of the fund.
As the debate over the Hustler Fund’s future intensifies, the government faces pressure to balance financial inclusion with accountability, ensuring that taxpayer money is used effectively.
