Former Mukurwe-ini MP Kabando wa Kabando has claimed that the Hustler Fund is an organised illegal activity.
In a statement on Tuesday, Kabando said this is because the fund has no legislation backing it.
He went on to say the fund also lacks parliamentary oversight, which makes it illicit money.
Kabando further alleged that the money is "mercenary operated" and corrupt.
Despite Kabando's remarks, the Hustler Fund has a functional board of directors chaired by Irene Karimi.
Karimi was appointed by President William Ruto in a Gazette notice dated January 20.
Other members are Lawrence Chelimo, Paul Musyimi and Hardlyne Lusui.
The board is also made up of three other persons who are not public officers and a Fund’s administrator who is an ex-officio member.
KCB and Family Banks have been the custodians of the fund, while Safaricom, Airtel and Telcom are mobile network operators.
On Monday, Ruto revealed that the fund has so far given over Sh35 billion in loans to Kenyans.
From the amount, about Sh3 billion is in default.
“We have so far lent Sh35 billion, so if only Sh3 billion has not been repaid is that a problem?” he posed during a meeting with a group of leaders from the Rift Valley.
