The Kenyan government has reiterated its unwavering commitment to financial inclusion through the Hustler Fund initiative, a program designed to empower the country’s most financially vulnerable populations. According to Medium, Small and Micro Enterprises (MSMEs) Principal Secretary Susan Mang’eni, the government will continue to develop innovative financial products to address persistent credit market failures and unlock access to affordable credit.
“We want to assure Kenyans that the Fund remains committed to its objective and purpose of deepening financial and credit inclusion among the most vulnerable segments of the economy,” said PS Mang’eni. She added that new financial solutions would be tailored to meet the needs of unserved and underserved populations.
Launched on 30th November 2022, the Hustler Fund was initially capitalised with Ksh. 20.2 billion, including Ksh. 12 billion earmarked for lending and Ksh. 8 billion allocated as counterpart funding for long-term pension savings for beneficiaries. An additional Ksh. 200 million was used to support the Fund’s operations. Mang’eni clarified that contrary to recent media reports, the Ksh. 8 billion allocated for savings was not withdrawn from the National Treasury, as the matching savings product was still under development during the audit review period ending June 30, 2023.
The first official matching of savings took place on the Fund’s first anniversary in November 2023. The Public Accounts Committee has since requested further documentation, which the Ministry has pledged to provide promptly.
Since its inception, the Hustler Fund has disbursed Ksh. 71 billion to over 26 million Kenyans across various loan products, including personal, group, and bridge loans. It has also mobilised nearly Ksh. 4.8 billion in voluntary and mandatory savings.
A behavioural credit rating system has emerged from the Fund’s operations, categorising borrowers into nine credit bands. Notably, over 4.5 million out of 9 million repeat borrowers fall within the A and B grades, reflecting strong repayment behaviours.
To reward creditworthy customers, the bridge loan product is evolving into a 30-day term loan with higher limits, aiming to build banking relationships and ease access to mainstream financial services for small-scale entrepreneurs.
