The Lower Eastern Times Opening The Third Eye
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President William Ruto has defended the Hustler Fund, his key economic empowerment program, amid increasing demands for its closure due to alleged poor performance and structural issues.
During a discussion with private sector leaders, Ruto rejected the criticisms, calling them misguided and emphasized that the Fund has positively impacted millions of ordinary Kenyans.
“Our detractors and skeptics want to convince people that the Hustler Fund has completely failed,” Ruto said. “They consider a micro-loan of just Sh1,000 insignificant.”
He pointed out the Fund’s successes since its launch, including disbursing over Sh72 billion to 26 million Kenyans, accumulating Sh5 billion in savings, and providing vital capital to small-scale entrepreneurs nationwide.
Responding to accusations of high loan default rates, Ruto rejected claims that 60 percent of loans are unpaid, calling such figures “deliberate distortions.”
According to official statistics, the Fund has an 83.3 percent loan recovery rate, nearly matching the 83.6 percent repayment rate of traditional banks.
“What are they implying? That hardworking Kenyans like market vendors, boda boda riders, and artisans are habitual defaulters?” he questioned. “Kenyans are honest and resilient.”
Ruto reaffirmed his government’s dedication to inclusive economic progress and dismissed critics as “pessimists spreading negativity.”
“We are committed to building a just and inclusive society, and I rely on the private sector as a vital partner in this mission,” he said.
His comments come after the Kenya Human Rights Commission urged the closure of the Hustler Fund, citing design flaws and ineffective implementation that have hindered its ability to foster enterprise growth and job creation.
The KHRC argued that expecting small businesses to take a Sh500 loan, generate profits, and repay it within two weeks is unrealistic and potentially harmful.
Despite over Sh53 billion disbursed by September 2024, the commission’s research found no clear evidence that the Fund has contributed to job creation or business expansion.
