Cooperatives and MSMES Cabinet Secretary Wycliffe Oparanya told the Senate on May 14, 2025, that 25 million Kenyans have borrowed from the fund.
The figures
indicate that a majority of Kenyans have embraced the Financial Inclusion Fund,
the government-run credit facility popularly known as the Hustler Fund.
“We have introduced a bridging loan of up to Sh150,000 for the two million people who have proven to be good borrowers,” Oparanya said.
President William Ruto launched the fund in November 2022 to provide credit access to Kenyans previously blacklisted by various credit rating agencies.
Oparanya explained that the fund offers loans ranging from Sh500 to Sh50,000 at an 8% pro-rated interest rate, equivalent to a daily rate of 0.002%.
Speaking during a plenary session at Parliament Buildings in Nairobi, Oparanya noted that 48% of borrowers are women.
“Our Ministry is undertaking outreach and awareness initiatives using a multi-sectoral approach. We are working collaboratively with other ministries, government departments and agencies, development partners, and private sector stakeholders to ensure that women in marginalised and remote areas are well-informed about available funding opportunities,” he said.
During the second-anniversary celebrations of the Hustler Fund in December 2024, President Ruto announced the introduction of a 'loan bridge' targeting good borrowers who would qualify for enhanced credit limits of up to Sh150,000, based on their repayment history.
Oparanya confirmed that two million borrowers have now been promoted to this bridging loan category and are eligible for higher credit limits.
Under the Hustler Fund model, 5% of every loan is allocated to savings, 70 per cent for long-term and 30 per cent for short-term savings.
However, the program continues to face major challenges, including limited funding and high default rates.
In February, Oparanya stated that the Hustler Fund was one of the most underfunded government initiatives in the proposed 2025/26 financial year budget.
He noted that the MSMES State Department requires Sh25.997 billion for the new fiscal year starting in June, but has only been allocated Sh6.353 billion, leaving a shortfall of Sh19.644 billion.
Oparanya said an additional Sh8 billion is needed for credit disbursement and Sh400 million for recurrent expenditure to effectively run the Hustler Fund.
In October 2024, officials from the fund revealed that they were considering the forceful recovery of over Sh12 billion in unpaid loans at the time.
However, in his latest address, Oparanya did not indicate how much of the current Sh70 billion borrowed remains outstanding.
