The government has dismissed a report by the Kenya Human Rights Commission (KHRC) recommending the scrapping of the Hustler Fund, terming it politically biased and misleading.
Cooperatives Cabinet Secretary Wycliffe Oparanya described the report's findings as politically motivated and lacking engagement with the government.
"We were never approached by the commission to provide input or clarification on the issues raised in the study," Oparanya said during a press briefing on Monday.
The CS defended the funds' impact, saying it had positively transformed the lives of millions of Kenyans.
He revealed that over nine million Kenyans are actively borrowing from the fund, with 26 million having accessed it since its launch.
"The fund is accessible to all Kenyans, contrary to the commission's claims," he added.
Principal Secretary for MSMEs Susan Mang'eni echoed the CS's sentiments, questioning the timing and motive behind the report.
"We read a lot of malice in this report. The timing of its release says it all," she said.
According to Oparanya, the government disburses Sh68 million daily through the fund, and a total of Sh72 billion has been issued to borrowers so far.
But the KHRC report, titled "Failing the Hustlers," paints a starkly different picture.
It criticises the Hustler Fund as a politically expedient but economically flawed initiative that has failed to uplift low-income earners as promised.
The report describes the fund as "structurally unsound, economically unsustainable, and politically manipulated." It recommends that the fund be scrapped altogether.
It cites data showing that by the end of 2022, the default rate had risen to 68.3 per cent. According to KHRC, for every Sh500 disbursed, Sh340 is lost.
Factoring in the average Treasury bill rate of 8.2 per cent and a three per cent operational cost, the commission estimates the total burden to taxpayers at 71.5 per cent.
"This is not financial empowerment. It is a loss-making scheme disguised as progress," the report states. "Quick money has become dead money."
