ANNET NERIMA: Hustler Fund is a political tool, scrap it

During the 2022 general election campaign, President William Ruto, then serving as Deputy President, pledged to establish the Hustler Fund, a digital platform to promote financial inclusion by supporting businesses in the micro, small and medium enterprises sector.

He promised to inject Sh50 billion as startup capital and assured the loans would be interest-free. Hustler Fund was officially launched on November 30, 2022, in a grand ceremony that promised to empower low-income and underserved Kenyans by offering accessible credit.

However, shortly after the launch, there was a notable shift in narrative. Borrowers were now required to repay the loans at an annual interest rate of eight per cent, contrary to the initial campaign promise of zero interest.

Some 16.6 million Kenyans accessed the Hustler Fund, eager to claim a share of what had been promised. In just three weeks, the fund recorded a disbursement of Sh9.6 billion.

However, concerns quickly emerged. A lobby group, Operation Linda Ugatuzi, challenged the fund’s legitimacy in court, citing its operation without an advisory or oversight board. This prompted a rushed development of regulations to govern the fund under Legal Notice No. 213 of 2022.

A report released on Monday by the Kenya Human Rights Commission, titled 'Failing the Hustlers', however, revealed that the Hustler Fund is a grand political gimmick disguised as economic empowerment.

The report followed two years of extensive research and exposed even more troubling findings about the Hustler Fund. According to the report, over Sh52 billion in personal loans and Sh179 million under the group micro-enterprise loans had been disbursed by September 2024. But there was no clear impact on business growth or employment.

The loan amounts, ranging between Sh500 and Sh1,000, were too small to start or expand businesses. The 14-day repayment period was considered impractical, and the funds disbursed did not align with borrowers’ actual financial needs.

The default rate skyrocketed to 68.3 per cent, and no clear regulatory framework for loan recovery exists. The estimated total cost to taxpayers stood at 71.5 per cent. In other words, the report opened Kenyans’ eyes to the fact that the Hustler Fund is nothing but an economic sinkhole.

Beyond the financial metrics, the study found a severe gap in financial literacy among beneficiaries, with many unable to manage loans or grow businesses. This contributes to high default rates and undermines the fund’s impact on economic empowerment.

The study concludes that the fund, which is illegal, fails to meet its stated objectives and is structurally flawed, economically unsustainable and politically compromised.

The KHRC demands that the Hustler Fund, a political tool, be scrapped entirely and its remaining resources reallocated to more effective financial inclusion programmes such as the consolidated Youth Enterprise Development Fund, Women Enterprise Fund and Uwezo Fund, which have demonstrated higher repayment rates.

While not without flaws, these financial inclusion programmes offer more structured systems, training components and established oversight mechanisms. These are features the Hustler Fund lacks.

Supported by reasonable repayment rates and credible governance, these initiatives provide a more effective platform for supporting small enterprises. Unlike the Hustler Fund, they deliver essential elements such as comprehensive training and accountability, which are critical for sustainable economic empowerment and long-term success.

True economic empowerment is not about flashy launches or empty political promises, as with the Hustler Fund. It demands genuine, lasting change, walking with communities, understanding their struggles and helping build sustainable livelihoods.

The critical question is not how much money was disbursed, but whether it truly made a difference. Hustler Fund did not. Failure to focus on these issues wastes taxpayers’ money.

Program Manager for Inclusion and Political Justice at the Kenya Human Rights Commission.