President William Ruto has defended the Hustler Fund against growing criticism, describing it as a transformative initiative that is promoting financial inclusion among millions of Kenyans, particularly those in the informal sector.
Speaking during the Presidential Private Sector Roundtable, the Head of State said the Financial Inclusion Fund has disbursed over Sh72 billion to more than 26 million Kenyans in less than three years. He emphasised that the initiative is providing access to affordable credit for small-scale traders, boda boda riders, and other informal workers previously excluded from mainstream financial systems.
“In just under three years, it has disbursed over Sh72 billion to 26 million Kenyans, mobilised over Sh5 billion in savings, and provided vital working capital to millions of micro-entrepreneurs proving that even the smallest businesses can thrive with the right support,” he said.
The Head of State dismissed critics who have claimed that the Hustler Fund is failing due to high default rate of 60 percent, stating that the actual repayment rate stands at 83.3 percent. He emphasised that this figure is nearly identical to the repayment rate in the previous banking system, challenging the narrative that Kenyans cannot be trusted with credit.
“Those critics are now spreading fear by falsely claiming a 60 percent default rate. That is a deliberate distortion of facts. The Hustler Fund has a recovery rate of 83.3 percent nearly identical to the previous banking. So what exactly are they saying? That ordinary, hard-working Kenyans are serial defaulters? Because they are not. Kenyans are honest, resilient, and capable — given the right tools and a fair chance,” he said.
Repayment Rate
Default Rate
Source: Cytonn Investment and the Ministry of Cooperative and MSME, 2022
President Ruto accused his critics of spreading misinformation and failing to appreciate the daily financial realities of millions of ordinary Kenyans, particularly those in the informal sector. He insisted that the fund’s performance proves that even low-income earners, when given the opportunity and proper support, are responsible borrowers.
President William Ruto delivers his speech during first anniversary celebrations of Hustler Fund in Nairobi.
Photo credit: File | PCS
“They create fear in the market and attempt to paint ordinary Kenyans as unreliable borrowers, which they are not. Let’s be clear — 83.3 percent recovery is not failure. That’s a world-class rate. It shows that Kenyans, especially the so-called small people, are creditworthy, disciplined, and serious about repaying what they borrow,” he said.
According to President Ruto, the Hustler Fund has not only provided affordable credit but also enabled 7 million individuals to be removed from the Credit Reference Bureau (CRB) blacklist, allowing them to re-enter the financial ecosystem and access formal financial services.
“They don’t understand the real struggles on the ground. With just 500 shillings, someone can start a business, put food on the table, and take care of their family. So, what has the Hustler Fund achieved? First, it was designed to correct a market failure — and we’ve done that. We’ve removed 7 million Kenyans from the CRB blacklist as a first step. Today, we have data on 26 million Kenyans — something that would have taken consultants years of research and capacity building to accomplish,” he said.
Status of Disbursement of Hustler Fund as of September 2024.
Personal loan product Group micro-enterprise loan product Opted-in customers 23,293,402 Number of registered and completed groups 53,724 Total number of members registered and completed groups 1,259,092 Amount disbursed (Sh) 52,945,855,160 Amount disbursed (Sh) 179,295,038 Savings account (Sh) 2,282,214,950 Savings account (Sh) 8,964,752
Source: https://www.hustlerfund.go.ke
The President noted that the fund sees 2 million Kenyans borrowing daily, and that 650,000 borrowers have progressed to higher loan limits, known as the “bridge category,” where they can now access up to KSh150,000 without the need for traditional collateral.
“This is a new era where trust and discipline are the real collateral. These upgraded borrowers qualify based solely on their credit behavior, marking a shift toward a new collateral system based on trust and repayment discipline,” he said.
To further support this transition, the government has developed a digital credit scoring platform, giving financial institutions access to borrower data. According to Ruto, this has prompted banks to begin absorbing Hustler Fund beneficiaries, many of whom were previously considered too risky due to lack of formal credit records or collateral.
President William Ruto during the launch of the Hustler Fund at Green Park, Nairobi, on November 30.
Photo credit: File | Nation Media Group
"We have developed a digital credit scoring platform that gives financial institutions real data. Today, banks are absorbing Hustler Fund borrowers who were once considered unbankable. That’s transformation,” he said.
The President called on stakeholders and critics to recognize the achievements of the fund rather than cast doubt on its performance. He reiterated that the Hustler Fund is a vital part of the government’s bottom-up economic transformation agenda, designed to empower citizens and promote inclusive economic growth.
"Instead of casting doubt, I urge stakeholders to recognize the achievements of this fund. The Hustler Fund is at the heart of our bottom-up economic transformation — it is working, and it is changing lives,” he said.
