Nairobi, Kenya- The days of ghosting on your Hustler Fund loan may be numbered.
The Kenyan government is rolling out a new tracking system to monitor and recover unpaid loans disbursed through the Financial Inclusion Fund, popularly known as the Hustler Fund.
The initiative, launched in 2022 to expand credit access to millions of Kenyans, is now facing turbulence due to soaring default rates—over 50pc of borrowers have reportedly failed to repay their loans.
Appearing before the Senate plenary, Cooperatives Cabinet Secretary Wycliffe Oparanya confirmed the development and linked the move to the government’s broader push for accountability and financial inclusion. “This is a very important initiative,” Oparanya said.
“We must protect it to ensure more Kenyans can benefit. A significant number of people misunderstood the fund as a post-election handout.”
Since its launch shortly after the 2022 general elections, the Hustler Fund has disbursed over Sh70 billion to more than 25 million Kenyans.
Promoted as a collateral-free, credit-history-agnostic alternative to predatory digital lenders, it was widely seen as a game changer—at least on paper. But reality hit hard. According to official data released last year, more than Sh11 billion is currently in default.
Worse, Sh7 billion of that comes from borrowers who took loans in the first two months and never looked back, despite repeated follow-ups.
The fund’s acting CEO, Elizabeth Nkuku, previously told lawmakers that early borrowers were the biggest culprits. Many saw the program as a government giveaway rather than a repayable loan. And now, the government wants its money back.
To recover the mounting unpaid debt, the state is now developing a digital tracking system to monitor loan defaulters.
While details remain under wraps, the system aims to improve visibility, boost collections, and restore credibility to a fund that was once hailed as revolutionary.
“This is not a punishment; it’s about sustainability,” Oparanya emphasized, urging Kenyans to meet their repayment obligations. “The fund was never meant to be a freebie—it’s a revolving facility meant to uplift many.”
Simultaneously, the government is conducting an impact assessment of the Hustler Fund to evaluate its long-term value, reach, and effectiveness.
The review is expected to guide adjustments to the fund’s structure and possibly tighten eligibility or enforcement going forward. For more on how digital lending platforms are being regulated in Kenya, this policy brief from the Central Bank of Kenya offers insight into the country’s approach to inclusive finance.
As the government cleans up one loan book, it’s opening another. Oparanya also announced the launch of a Sh33 billion youth and women empowerment initiative, co-funded by the World Bank.
The program, now undergoing sensitization campaigns across the country, is part of a broader strategy to tackle unemployment and economic inequality.
“This partnership with the World Bank is about empowerment—not handouts,” Oparanya noted. “We’re building platforms that will outlast political cycles.”
About two million Hustler Fund beneficiaries have already “graduated” to higher credit limits—up to Sh150,000—thanks to consistent repayment. These users will likely form the blueprint for success stories in the upcoming empowerment program.
Let’s face it—Kenya’s bold experiment with financial inclusion is at a crossroads. With a new loan tracking system on the way, an impact review in progress, and a Sh33 billion empowerment project gaining traction, the stakes couldn’t be higher.
Oparanya’s message is clear: pay back what you borrowed, or the system will catch up with you. As the country balances between social welfare and financial sustainability, the Hustler Fund remains a case study in ambition, access—and accountability.
