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Principal Secretary for Micro, Small, and Medium Enterprises Susan Mang’eni has defended her department’s proposal for additional funding for the Hustler Fund, responding to skepticism surrounding its performance and loan repayment rates.
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Speaking at the 42nd Annual Seminar of the Institute of Certified Public Accountants of Kenya (ICPAK) in Mombasa, Mang’eni emphasized that the Hustler Fund plays a crucial role in addressing financial exclusion among low-income Kenyans.
“When we created the Hustler Fund, our goal was to fix a market gap,” Mang’eni said, explaining that many Kenyans at the lower end of the economic ladder are unable to access affordable credit due to their invisibility within the formal financial ecosystem.
She pointed out that most conventional lenders require guarantees such as payslips, logbooks, or title deeds—collateral that many Kenyans do not possess.
The Hustler Fund, she said, was designed to bridge this gap by offering unsecured loans through a simple mobile-based application process available via USSD code *254#, without the need for airtime or internet.
Mang’eni revealed that since its rollout, the fund has served 25.8 million Kenyans—roughly three-quarters of the adult population. Borrowers typically start with personal loan limits between Sh500 and Sh50,000, with opportunities to increase their limits through consistent borrowing and timely repayment.
“We disburse more than Sh50 million daily. As more people qualify for higher limits, we must inject more capital to meet the growing demand,” she said.
She also highlighted the Hustler Fund Bridge Product, introduced in December 2024, which targets borrowers with strong repayment records. The initiative allows borrowers in the top two tiers (Bands A and B) of a nine-tier credit scoring system to access loans of up to Sh150,000.
Currently, about 4.5 million borrowers fall into those top categories, she said.
Responding to concerns over defaults, Mang’eni assured that there are systems in place to monitor loan performance. She added that the government is not contemplating debt write-offs but plans to introduce a “Hustler Fund Clearance Certificate” to encourage compliance—similar to the Higher Education Loans Board (HELB) clearance and Certificate of Good Conduct.
Mang’eni reiterated the long-term vision of the Hustler Fund: to enroll all Kenyans from the age of 18, helping them build formal credit histories from a young age.
