The government is implementing a new system to track Kenyans who have defaulted on Hustler Fund loans, as part of efforts to recover unpaid amounts. The initiative coincides with an ongoing impact assessment of the fund, launched in 2022.
Co-operatives Cabinet Secretary Wycliffe Oparanya told the Senate that a new Sh33 billion youth and women empowerment programme is also being rolled out in partnership with the World Bank. Sensitisation efforts are already underway.
Oparanya highlighted that many Kenyans misunderstood the fund as a post-election handout, contributing to a default rate exceeding 50%, with Sh11 billion unpaid. He stressed the importance of repayment to maintain the programme’s sustainability.
Since its launch, the Hustler Fund has disbursed over Sh70 billion to more than 25 million Kenyans. About two million borrowers have qualified for higher loan limits due to timely repayments.
The fund aims to provide affordable credit without requiring collateral or credit history, shielding citizens from predatory lenders. The government hopes the tracking system will recover funds and expand benefits to more Kenyans.
