William Ruto Defends Hustler Fund after Kenya Human Rights Calls for Shutdown of Scheme
- President William Ruto defended the Hustler Fund's success, citing over KSh72 billion disbursed to 26 million Kenyans since its launch in November 2022
- The head of state refuted the claim by the Kenya Human Rights Commission (KHRC) that the fund recorded a 60% default rate
- Ruto said the Hustler Fund loan repayment is one of the best-performing at 83.3%, closer to the commercial banks' recovery rate
- He said Kenyans are honest and do not disappoint in doing their part, accusing the KHRC report of malicious intent
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Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
President William Ruto has defended the government's flagship Hustler Fund, rejecting recent calls by the Kenya Human Rights Commission (KHRC) to close it down.
Source: Twitter
Ruto emphasised the success of the initiative in supporting millions of low-income Kenyans.
The Hustler Fund was established in November 2022 to provide loans to micro-entrepreneurs and people excluded from traditional financial systems.
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What Ruto said about Hustler Fund's success
Speaking at a roundtable discussion with the private sector in Nairobi on Wednesday, August 6, Ruto said the fund has disbursed over KSh 72 billion to 26 million Kenyans and mobilised KSh 5 billion in savings.
The head of state emphasised that the average loan size is about KSh 1,000, which he said has helped support small businesses.
The president dismissed claims of a 60% default rate, describing them as a "deliberate distortion of facts"
He presented official data showing a repayment rate of 83.3%, nearly identical to the 83.6% repayment rate of the formal banking sector.
"Kenyans are honest. Kenyans are resilient. If you give them the right tools and give them a fair chance, they will always contribute," Ruto said.
What KHRC said about Hustler Fund
Source: UGC
In contrast, the recent KHRC report titled "Failing the Hustlers" criticised the design and implementation of the fund.
The report indicates a default rate of 68.3% and a net financial loss of 71.5% for every KSh 500 lent, highlighting the short repayment period of 14 days and low loan amounts as barriers to meaningful business development.
The KHRC recommended that the programme be discontinued immediately as it had become more of a political tool than a real financial solution.
However, Ruto stood by the initiative, describing it as a cornerstone of his government's "bottom-up" economic transformation agenda.
He expressed confidence that the fund's positive impact on financial inclusion and micro-entrepreneurship will continue to grow and urged stakeholders to support the programme's objectives.
Auditor General flags financial flaws in eCitizen
In other news, TUKO.co.ke reported that the Auditor General, Nancy Gathungu, cited irregularities in the eCitizen payment system
Gathungu cited KSh 10 billion, which remains unaccounted for between ministries, departments and agencies (MDAs).
The report tabled in parliament sparked debate among Kenyans, who described the government's digital payment system as a crime scene.
Source: TUKO.co.ke
