Hustler Fund: Government Mulls KSh 6 Billion Debt Write-Off as 10M Kenyans Default
- The Hustler Fund was launched on November 30, 2022
- The government said that the fund would have access to a funding pool of KSh 50 billion a year over the past five years and provide individual loans of up to KSh 50,000
- But three years down the line, the fund has been hit with massive defaults, a move that could see the operations of the kitty stopped
Bonface Kanyamwaya, a journalist at TUKO.co.ke, has more than 10 years of financial, economic, business, markets, and aviation expertise, providing insights into Kenya and global trends.
The government of Kenya plans to write off KSh 6 billion that was defaulted in Hustler Fund loans by Kenyans in 2022.
Source: Twitter
The state said that the money, set to be written off, was taken by 10 million defaulters who took loans from the fund in November and December 2022.
The government launched the fund in 2022 as part of a plan to allow more Kenyans, especially those in informal employment, to have access to an alternative means of credit.
"10 million borrowers who took loans in 2022 have failed to repay. The debt owed by these borrowers stands at KSh 6 billion, and that's what we want to be written off," Small and Medium Enterprises Development PS Susan Mang'eni told the National Assembly on Wednesday, May 21, 2025.
Mangeni was, however, quick to defend the performance of the fund, adding that 9 million borrowers have been repaying their loans on time.
PS asks for more budget to support Hustler Fund
She has asked for an additional KSh 5 billion in the budget to help increase loan limits for lenders who have been borrowing and repaying on time.
However, lawmakers did not agree with her. They questioned the rationale behind adding more money to the fund to lend to defaulting borrowers.
"You want more money to lend to Kenyans, yet you can't recover what was already disbursed?" asked Trade Committee Vice Chairperson Marianne Kitany (Aldai).
Mangeni had asked for an additional budget of KSh 5 billion but only KSh 1 billion was approved by Parliament.
The Hustler Fund, launched as a flagship project under President William Ruto, was designed to provide affordable credit to small-scale entrepreneurs in the country.
Since its inception four years ago, KSh 65.7 billion has been disbursed, with KSh 53.2 billion repaid.
With mounting defaults, the government is now considering legal changes to enforce loan recovery measures, as a majority of Kenyans refuse to repay debts on time.
Source: Twitter
Kenya invites bids for 15,315 affordable houses
The government of Kenya has floated a tender for contractors to build 15,315 affordable houses in Kenya.
The state said that completed tender submissions must be delivered at its offices located at Ardhi House in Nairobi by June 18, 2025, and bidders must meet specific technical and financial qualifications.
A total of 47 housing projects will be implemented across 34 counties, targeting both urban and rural constituencies to expand access to low-cost housing.
The largest project, located in Nakuru Town East, will consist of 1,600 housing units, while other areas like Subukia and Wundanyi will receive between 200 and 300 units.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
