Hustler fund
Borrowers with outstanding Hustler Fund loans can now use their Safaricom Bonga Points to repay the government-backed credit facility in a move aimed at improving loan recovery and reducing the growing number of defaulters.
The Financial Inclusion Fund (FIF), widely known as the Hustler Fund, has notified customers through text messages that they can redeem their accumulated Bonga Points to settle part or all of their outstanding loans.
The initiative offers borrowers an additional repayment option as the government works to strengthen collections. The new repayment method comes at a time when the fund is facing a 15 per cent default rate, equivalent to about Sh12.5 billion as of March this year.
Hustler Fund Chief Executive Officer Henry Tanui said the initiative has already begun yielding positive results, revealing that Sh3 million had been recovered within the first week after its rollout.
“The idea is that if there are other convenient options for borrowers to repay, then we should make them available,” Tanui said.
Current conversion rates indicate that five Bonga Points are equal to Sh1, meaning a borrower would need around 2,500 Bonga Points to repay a Sh500 Hustler Fund loan.
However, Safaricom has clarified that the value of Bonga Points is not fixed and may vary depending on a customer's redemption history. According to the telecommunications firm's latest annual report, customers had accumulated Bonga Points worth Sh3.6 billion by March 2026, presenting a significant opportunity for loan recovery through the loyalty programme.
The repayment option is part of broader measures to improve the sustainability of the Hustler Fund after the National Treasury stopped allocating fresh funding to the programme in the current financial year. The government is now focusing on enhancing repayments to keep the fund operational.
Government financing for the fund has gradually reduced from Sh20 billion when it was launched to Sh300 million in the financial year ending June 2026. By March this year, the fund had disbursed Sh83 billion in loans, with Sh71 billion already recovered, according to the State Department for Micro, Small and Medium Enterprises.
Even so, the programme has attracted criticism following findings by the Auditor-General, who reported that 104,631 loans valued at Sh116.5 million were issued to borrowers whose national identity card details were missing from the customer database. The findings raised concerns over weaknesses in borrower verification and credit assessment.
Introduced by the Kenya Kwanza administration, the Hustler Fund was established to provide affordable credit to individuals and small businesses that are often unable to access conventional bank loans.
Authorities believe that introducing flexible repayment methods, including the use of Bonga Points, together with incentives such as higher borrowing limits for consistent repayment, will help improve loan recovery and ensure the fund remains financially sustainable.
