Deputy Chief of Staff, Delivery and Government Efficiency in the Office of the President, Eliud Owalo, has termed the Hustler Fund project a major milestone since its launch in November 2022.
Speaking during an interview on Nation FM, Owalo praised the initiative, noting that it has significantly improved the disposable incomes of many Kenyans, particularly those at the bottom of the economic pyramid.
“We have 26.7 million Kenyans registered in the Hustler Fund. We’ve disbursed Sh67 billion to individuals and Sh196 billion to groups. The cumulative effect of this has improved disposable incomes for people operating at the bottom of the economic pyramid,” he said.
Owalo further emphasized the fund’s role in spurring economic growth, particularly through the informal sector.
“Savings courtesy of small and medium enterprises have risen to Sh4.3 billion, which is driving investment and economic growth within the informal economy,” he added.
However, Auditor-General Nancy Gathungu flagged Sh8 billion in unaccounted funds within the Hustler Fund.
According to her report for the financial year ending June 2023, the State Department for Cooperatives Development spent Sh12 billion against an approved budget of Sh20 billion, leaving a gap of Sh8 billion that remains unaccounted for.
In a recent development, Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya, during the Kenya Public-Private Sector MSMEs Conference in Mombasa, announced that defaulters of the Hustler Fund may soon be barred from accessing credit from other financial institutions, including banks and SACCOs.
“Before any bank approves a loan, it will confirm if the borrower has a history with the Hustler Fund and whether they honored their repayment obligations,” said Oparanya.
“This is about accountability. If you took money from the fund and failed to repay, you will not access credit.”
The Hustler Fund is a flagship Kenyan government initiative aimed at promoting financial inclusion, especially among Micro, Small, and Medium Enterprises (MSMEs).
It provides accessible and affordable loans, savings, and insurance products to individuals and groups traditionally excluded from the formal credit market.
