Where is Sh12 billion Hustler Fund cash? MPs turn heat on CEO

A parliamentary watchdog committee has put the Hustler Fund on the spot over the whereabouts of more than Sh12 billion, after its newly appointed CEO,  Henry Tanui, failed to provide crucial documents detailing how the public money was disbursed and who received it.

A tense session before the National Assembly’s Special Funds Accounts Committee on Tuesday saw MPs accuse the fund of hiding information, mismanaging billions, and shifting officials to conceal accountability gaps.

This they said is raising serious doubts about the integrity of President William Ruto’s flagship credit scheme.

Committee chair and Migori Woman Representative Fatuma Mohamed led the grilling, insisting the committee cannot proceed with any further audit unless full records of borrowers, payments, and loan recoveries are submitted.

“We cannot continue without the documents. One year later, you have not answered even one of the 21 queries raised. This is public money, and there is huge interest in this fund,” she said.

According to CEO Henry Tanui, the Hustler Fund has received Sh14 billion from the National Treasury since its inception and currently operates with only Sh1.4 billion rotating monthly.

This however, did not auger well with the members of parliament who demanded to know where the remaining Sh12.6billion that is not in circulation was being held or spent.

“So if you have received Sh14 billion and only Sh1.4 billion is revolving, where is the other money? Do you have Sh12 billion in your accounts?” Deputy chair and Imenti North MP Rahim Dawood asked.

Tanui repeatedly insisted that “no money has been lost”, arguing that unpaid loans do not qualify as stolen funds.

“I want to assure members that no money has been lost. The money was borne by Kenyans. Some Kenyans have not paid. They have the money. We have all the records. No money has been lost,” said Tanui.

“If you lend people money and they don’t pay, the money is lost,” Dawood said. “We have press reports showing Sh6 billion is already uncollected and many of those borrowers can’t be traced.”

Nyatike MP Tom Odege said the failure to provide borrower records one year after the request raises suspicion that some loans may have been issued to non-existent individuals.

“I may not have evidence—that is what you must provide—but we believe money went to fictitious accounts. Some people registered SIM cards, took the loans, and threw the lines away,” Odege said.

He insisted the committee cannot verify any claims without full lists of borrowers, including their names, ID numbers, phone contacts, and amounts borrowed.

Several lawmakers questioned why senior officials, including the former acting CEO and the Principal Secretary overseeing the fund, have been moved or replaced.

“This CEO is a sacrificial lamb. Hustler Fund is changing people to hide something,” Dawood said. “After months, money is misappropriated and officials are changed so no one takes responsibility.”

The committee wants the responsible Principal Secretary summoned within seven days to explain the fund’s operations from inception.

Tanui, only three months in office, asked for more time to retrieve extensive documentation, noting the fund handles 26 million loan accounts.

“If you allow, we will come with service providers to demonstrate the records. This is a huge document,” he told the committee.

But the lawmakers dismissed the plea, saying the fund had been given 14 days last year to submit the documents and has failed to honour the directive.

"All the documents that show that that person has borrowed and the amount borrowed. Whether it's 10 lorries, we want it so that we can justify to Kenyans that money has been borrowed, has not been returned, or money has been lost. Right now we are working with speculations, which is not good for the committee and not good for the Hustler Fund," said Mohamed.

The committee is now considering ordering a special audit by the Auditor-General to trace the use of the Sh14 billion allocated to the Hustler Fund.

“If it turns out only Sh1.4 billion is active, then mathematically more than Sh12 billion is lost,” Dawood warned.

The committee adjourned the session and issued a seven-day deadline for the CEO to provide all borrower records, respond to all 21 audit queries from 2022/2023, account for every shilling received from the Exchequer.

Failure to comply, MPs warned, will force the committee to issue an unfavourable report and potentially recommend the fund’s closure.

“We will not accept excuses. This committee will not allow public money to disappear without accountability. Kenyans deserve the truth,” Mohamed ruled.