President William Ruto has launched a strong defense of his administration’s flagship Hustler Fund, dismissing recent criticism as elitist, unfounded, and politically charged.
Speaking during a private sector roundtable in Nairobi, Ruto emphasized that the initiative, launched in 2022 with a starting capital of Ksh.50 billion, is a game-changer for millions of Kenyans excluded from formal financial systems.
“Our critics – the naysayers, the perpetual pessimists, would have you believe that the Hustler Fund is a total failure,” Ruto said. “But they either don’t understand or refuse to acknowledge the daily struggles of the mama mboga or boda boda rider who finally has access to capital.”
Ruto’s remarks follow the release of a damning report by the Kenya Human Rights Commission (KHRC), titled “Failing the Hustlers”, which called for the fund’s abolition. The report claimed a default rate of 68.3%, an overall loss of 71.5%, and labeled the Fund “financially unsustainable and structurally flawed.”
“There’s no business that can go at a 71 percent loss and be viable. The fund is a burden on taxpayers and must be scrapped,” KHRC Program Manager Annette Nerima told Spice FM.
But Ruto vehemently disputed those claims, insisting the fund boasts an 83% repayment rate nearly equal to the commercial banking sector and has disbursed Ksh.72 billion to over 26 million Kenyans. The fund has also mobilized Ksh.5 billion in savings.
“I want to persuade my good friends from Nairobi and posh hotels that there are Kenyans who today have a mechanism to borrow money,” Ruto said.
However, the Auditor General’s office has flagged concerns, including a Ksh.8 billion discrepancy in the 2022/23 budget and loans disbursed to underage or “unborn” borrowers. 64% of the loans reportedly remain unpaid over a year later.
Principal Secretary for MSMEs Susan Mang’eni countered the allegations, stating the Ksh.8 billion was allocated for pension savings and not misused.
Critics like governance expert Prof. Fred Ogolla argue the Fund was structurally flawed from the beginning, citing the lack of a CEO, board, or legal framework. Ogolla has even filed a court case challenging its legality.
Despite mounting scrutiny, Ruto remains unwavering.
“The Hustler Fund has given 26 million Kenyans a chance to build credit histories. That’s not failure, that’s transformation,” he concluded.
