Borrowers with unpaid Hustler Fund loans can now use their Safaricom Bonga Points to clear their balances, as the government rolls out new measures to improve repayments and tackle rising defaults.
The Financial Inclusion Fund (FIF), commonly known as the Hustler Fund, has informed borrowers via text messages that they can redeem their accumulated Bonga Points to pay off part or all of their outstanding loans.
The move introduces an alternative repayment channel as the government seeks to boost collections from borrowers. It comes amid a 15 per cent default rate, translating to about Sh12.5 billion in unpaid loans as of March this year.
Hustler Fund Chief Executive Officer Henry Tanui said the new repayment option is already showing promising results, disclosing that the fund recovered Sh3 million within the first week of its introduction.
“The idea is that if there are other convenient options for borrowers to repay, then we should make them available,” Tanui said.
Based on the current conversion rate, five Bonga Points are equivalent to Sh1, meaning a borrower would require about 2,500 Bonga Points to settle a Sh500 Hustler Fund loan.
Safaricom, however, notes that the value of Bonga Points is not constant and may differ depending on how a customer redeems them. The company’s latest annual report shows customers had accumulated Bonga Points worth Sh3.6 billion by March 2026, offering a sizeable pool that could support loan recoveries through the loyalty programme.
The latest repayment option forms part of wider efforts to keep the Hustler Fund financially viable after the National Treasury excluded it from fresh funding allocations in the current financial year. The government’s strategy has shifted towards improving loan recoveries to sustain the programme.
Treasury support for the fund has steadily declined, falling from Sh20 billion at its launch to Sh300 million in the financial year ending June 2026. By March, the Hustler Fund had disbursed Sh83 billion in loans and recovered Sh71 billion, according to the State Department for Micro, Small and Medium Enterprises.
Despite its achievements, the programme has faced scrutiny after the Auditor-General revealed that 104,631 loans worth Sh116.5 million were issued to borrowers whose national identity card details were missing from the customer database. The findings raised questions about gaps in borrower verification and credit assessment processes.
Launched by the Kenya Kwanza administration, the Hustler Fund was created to provide affordable financing to individuals and small businesses that struggle to access credit from traditional financial institutions.
Government officials believe that expanding repayment options, including the use of Bonga Points, alongside incentives such as increased borrowing limits for customers with strong repayment records, will strengthen loan recovery and improve the long-term sustainability of the fund.