A new report by the Kenya Human Rights Commission (KHRC) has delivered a scathing assessment of the Hustler Fund, branding it a politically expedient yet economically disastrous initiative that has failed to empower low-income Kenyans as promised.

The report, titled "Failing the Hustlers", was unveiled to the public on Monday, August 4, 2025, and recommends that the government scrap the fund entirely, citing deep structural flaws, economic unsustainability, and political manipulation.

“By December 2023, over Sh9.6 billion had been disbursed, yet there was no measurable impact on enterprise development or job creation,” the report states.

Launched in November 2022 with a Sh50 billion startup capital, the Hustler Fund was a flagship program under the Kenya Kwanza government’s bottom-up economic transformation agenda.

It was touted as a tool to provide accessible and affordable credit to millions of Kenyans excluded from formal financing systems.

However, KHRC argues that the fund has fallen far short of these goals.

“It promised to boost sectors such as agriculture, MSMEs, healthcare, housing, and the creative economy. But those promises remain largely unfulfilled,” the report notes.

The Commission further criticizes the fund’s design, highlighting the loan amounts ranging from Sh500 to Sh1,000 for first-time borrowers—as insufficient to start or grow viable businesses.

Even more concerning, according to KHRC, is the 14-day repayment window, which it deems impractical and exploitative.

“These terms not only undermine the potential for meaningful enterprise growth but effectively trap borrowers in a cycle of debt,” the report reads.

KHRC warns that the structure of the Hustler Fund encourages repeat borrowing without addressing the systemic barriers to economic inclusion. It also accuses the government of using the program as a political tool rather than a development strategy.

“The Hustler Fund is an unsound and politically compromised project that should be removed from government programming altogether,” the Commission asserts.

The report has already sparked fresh debate over the viability of the fund, with critics calling for a rethinking of government-backed financial inclusion strategies, especially for micro and small enterprises.

The government is yet to issue an official response to the KHRC findings.