Sh70 billion borrowed through Hustler Fund, says CS Oparanya

Twenty-five million Kenyans have borrowed a total of Sh70 billion from the Hustler Fund since its launch in November 2022, according to Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya.

Speaking before the Senate on May 14, 2025, Oparanya said the figures show widespread use of the government-run credit facility, also known as the Financial Inclusion Fund.

"We have introduced a bridging loan of up to Sh150,000 for the two million people who have proven to be good borrowers," he said.

President William Ruto launched the fund to help Kenyans who had previously been blacklisted by credit agencies to access credit.

Oparanya explained that loans range from Sh500 to Sh50,000, with 8% being women, and that the ministry is reaching out to more people through a multi-sectoral approach.

"Our Ministry is undertaking outreach and awareness initiatives using a multi-sectoral approach. We are working collaboratively with other ministries, government departments and agencies, development partners, and private sector stakeholders to ensure that women in marginalised and remote areas are well-informed about available funding opportunities," he said.

During the fund’s second anniversary in December 2024, the president introduced a new 'loan bridge' product aimed at responsible borrowers.

Oparanya confirmed that two million borrowers now qualify for the enhanced loan limits under this category.

Under the Hustler Fund model, 5% of every loan goes to savings, with 70% set aside for long-term and 30% for short-term savings.

Despite the large uptake, the fund is facing serious financial strain.

In February, Oparanya told the Senate that the Hustler Fund is among the most underfunded programs in the proposed 2025/26 budget.

He said the MSMES State Department needs Sh25.997 billion but has only received Sh6.353 billion, leaving a gap of Sh19.644 billion.

He added that Sh8 billion is required for credit disbursement and another Sh400 million for recurrent expenditure to keep the program running.

In October 2024, officials said the fund was considering forceful recovery measures for over Sh12 billion in unpaid loans.

However, Oparanya did not disclose how much of the current Sh70 billion remains unpaid.