Government Defends Hustler Fund Expansion, Cites Empowerment of 25.8M Kenyans

Government Defends Expansion of Hustler Fund, Cites Strong Impact and Accountability Measures

Mombasa, Kenya – May 26 — The State Department for Cooperatives has defended the government’s decision to expand funding for the Hustler Fund, a flagship microcredit program aimed at empowering small businesses and informal traders across Kenya.

Speaking during a national cooperative development forum in Mombasa, Principal Secretary Susan Mang’eni emphasized that the Fund has already transformed the economic landscape for millions of Kenyans, enabling easier access to affordable credit.

“To date, the Hustler Fund has empowered over 25.8 million Kenyans, with approximately KSh 50 million disbursed daily to individuals operating within the informal economy,” Mang’eni stated. “The decision to expand it is not only justified—it is essential.”

She revealed that a new financing arrangement has been secured to inject additional capital into the program in response to surging demand. The PS assured stakeholders that this move is part of a broader strategy to enhance financial inclusion, spur grassroots enterprise growth, and support job creation across all counties.

Addressing concerns over loan defaults and debt accumulation, Mang’eni clarified that the government will not write off any existing loans. Instead, a credit clearance system will be rolled out to ensure that borrowers clear outstanding debts before qualifying for additional credit.

“We are implementing robust mechanisms to promote responsible borrowing. Clearance certificates and other incentives will be used to encourage timely repayment,” she said, adding that the Fund’s current default rate remains low compared to industry averages.

Despite criticism from some quarters about the potential risks of over-indebtedness among vulnerable borrowers, Mang’eni maintained that the Fund’s structure is sound and continues to play a critical role in Kenya’s bottom-up economic transformation agenda.

“The Hustler Fund is more than just a loan facility—it is a vehicle for dignity, self-reliance, and economic inclusion,” she concluded.