The government has clarified that no money was lost from the Hustler Fund, after concerns were raised in the Auditor General’s report for the financial year ending June 30, 2023.
Principal Secretary for the State Department for Micro, Small and Medium Enterprises Development, Hon. Susan Mang’eni, maintained that the Ksh. 8 billion in question—allocated as counterpart funding to match beneficiaries’ long-term savings—was never withdrawn from the National Treasury and therefore could not have been misappropriated.
“The Ksh. 8 billion was allocated for the savings component of the Hustler Fund as per the Public Finance Management (Financial Inclusion Fund) Regulations, but the product was still under development by the end of the audit period,” Mang’eni stated.Launched on November 30, 2022, the Hustler Fund was initially capitalised at Ksh. 20.2 billion, with Ksh. 12 billion earmarked for lending and Ksh. 8 billion for long-term savings matching. An additional Ksh. 200 million was set aside to support the fund’s operationalisation.
By the close of the audit period on June 30, 2023, the fund had only been operational for seven months, and the long-term savings product had not yet been rolled out.
Mang’eni explained that withdrawing the Ksh. 8 billion before finalising the savings component would have been fiscally irresponsible.
The product was eventually completed and launched during the fund’s first anniversary in November 2023, at which point the first matching contributions were made.
The Hustler Fund team is currently preparing additional documentation requested by the Parliamentary Public Accounts Committee and has been given two weeks to submit the information.
Mang’eni maintains that despite the audit concerns, the Fund continues to make significant strides.
To date, Ksh. 71 billion has been disbursed to over 26 million Kenyans across personal, group, and bridge loan products. It has also mobilised Ksh. 4.8 billion in savings through voluntary and mandatory contributions.
Mang’eni also highlighted the establishment of a behavioural credit rating system for Hustler Fund beneficiaries, noting that more than 4.5 million repeat borrowers are now classified within top-tier credit bands, a reflection of improved financial behaviour.
A new 30-day bridge loan product, introduced during the fund’s second anniversary, is also enabling beneficiaries to transition into higher loan limits and establish banking relationships, further enhancing their access to credit from formal financial institutions.
Mang’eni reaffirmed the government’s commitment to expanding financial inclusion and addressing credit market failures: “We remain focused on unlocking affordable credit access for the most vulnerable segments of our economy.”
