Ruto dismisses Hustler Fund critics, says kitty has disbursed Sh72bn

President William Ruto has yet again affirmed that the Hustler Fund has drastically changed the livelihoods of less privileged Kenyans through affordable loans.

Speaking on Tuesday, Ruto said the fund has, since its inception in November 2022, disbursed Sh72 billion to ordinary Kenyans, including mama mbogas, boda boda riders and jua kali artisans.

The President dismissed critics who have questioned how small loans as low as Sh500 could transform lives.

"There are some rich people who are so arrogant. I recently saw them issuing a statement at Serena (hotel) saying that the Hustler Fund should be scrapped. Someone takes tea worth Sh2,000 at Serena and asks how Sh1,000 will help anyone," Ruto said.

"They don't know that Sh1,000 can purchase stock for someone to do business and progress."

Ruto launched the Hustler Fund on November 30, 2022, to provide loans to Kenyans, with initiatives including personal, micro business, SME and start-up loans.

The revolving fund had an initial funding pool of Sh50 billion aimed at what Ruto described as liberating Kenyans from predatory lenders.

However, critics, including the Kenya Human Rights Commission (KHRC), have called for the disbandment of the facility, saying it has failed in its financial inclusion objective given the losses and high default rates.

“Evidence has further shown that there has been a significant misallocation of public funds via the Hustler Fund, with a default rate of 68.3 per cent, a net loss of 71.5 per cent, and an opaque governance structure flagged by the Auditor General,” the KHRC said in August following a study dubbed Failing the Hustlers.

Ruto dismissed the critics as naysayers, saying "Hustler Fund is larger than most banks" because of its lending power and reach.

"And I know even amongst you, very few people do not have Hustler Fund accounts. Almost everyone here has a Hustler Fund account," Ruto said.

He was speaking while addressing grassroots leaders from Turkana County at the State House, Nairobi.

"Whether you have repaid or not, that's another story, but everyone here has a Hustler Fund account."

"We have 26 million people inside Hustler Fund, there's no other bank with that kind of customer base. And no one has ever been auctioned for defaulting because we know one day you will pay."