NAIROBI, Kenya — The government will rely on borrower identification and public sensitisation rather than punitive debt collection methods to recover loans issued under the Hustler Fund, Chief Executive Officer Henry Tanui has said.
Appearing before lawmakers, Tanui said the fund has systems that link loans to borrowers’ national identification numbers, making it difficult for defaulters to evade repayment even if they change their mobile phone numbers or SIM cards.
“The young people who borrowed and thought they could disappear, they can’t because their IDs are linked to the loans,” Tanui said.
He stressed that the fund remains committed to recovering the money issued to borrowers, noting that repayment obligations apply to all beneficiaries except those who have died.
“Except for those who have passed on, we will collect the money,” he said.
Billions borrowed under the programme
According to Tanui, borrowers had accessed Sh83 billion from the fund as of Wednesday. Out of this amount, Sh71 billion has already been repaid, while Sh5.3 billion has been saved through the programme’s savings component.
He disclosed that the default rate currently stands at 15pc, a level the fund’s management considers manageable as it continues to encourage voluntary repayments.
The William Ruto administration launched the Hustler Fund in 2022 as a flagship initiative aimed at expanding access to affordable credit for small traders, youth, and low-income earners who are often excluded from conventional banking systems.
Nairobi leads borrowing
Tanui told legislators that Nairobi has the highest number of borrowers, followed by Kiambu County.
The fund has primarily been accessed through mobile platforms, allowing users to apply for small loans using their national ID numbers.
The CEO made the remarks while responding to questions from Rahim Dawood, the Member of Parliament for North Imenti Constituency, who had asked whether defaulters could face arrest or other enforcement actions.
No arrests or asset seizures
Tanui clarified that the fund will not resort to aggressive debt recovery tactics commonly used by private lenders.
“We will not behave like shylocks. We will not come to pick up your items if you default,” he said.
Instead, the agency will focus on public awareness campaigns and financial education to encourage borrowers to repay their loans.
Policy context
The Hustler Fund is part of broader government efforts to expand financial inclusion and support micro-enterprises, particularly in the informal sector. The programme provides microloans at subsidised interest rates and includes a savings component designed to build long-term financial resilience among borrowers.
With billions already disbursed and a growing borrower base across the country, authorities say improving repayment rates will remain critical to ensuring the fund’s long-term viability and impact on Kenya’s small-business economy.
