Wednesday, September 10, 2025 - Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, has announced that Kenyans who default on Hustler Fund loans will face difficulties accessing credit from banks and microfinance institutions.
Speaking during an event in Mombasa on Wednesday, September
10th, 2025, Oparanya revealed that the Government has partnered with
financial institutions to integrate Hustler Fund repayment data into the
national credit system.
“Kama haujalipa Hustler Fund, ukienda kwa benki yoyote
watakwambia hawawezi kukupa pesa yoyote,” he cautioned.
Oparanya emphasized that the Hustler Fund was created to
empower low-income earners, including small-scale traders and boda boda
operators - not to be misused.
He stressed that repayment discipline is essential to
building financial responsibility and ensuring the fund’s sustainability.
“When borrowers default, it affects others who genuinely
need support,” he said, urging beneficiaries to use the loans productively and
repay on time to improve their creditworthiness and qualify for future Government-backed
financial programs.
Launched in December 2022 by President William Ruto’s
administration, the Hustler Fund aimed to provide affordable credit to millions
excluded from formal financial systems.
However, low repayment rates have prompted tighter
regulations.
A recent report by Auditor General Nancy Gathungu cast a
spotlight on the Hustler Fund’s repayment crisis, revealing that 64% of
the total loan portfolio, equivalent to Ksh8.74 billion, remains unpaid for
over a year.
Financial experts believe linking Hustler Fund performance
to broader credit access could encourage repayment.
Critics, however, warn it may deepen financial exclusion for
vulnerable groups.
The Kenyan DAILY POST
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