Govt Explains Sh8 Billion Hustler Fund In Question

The government has addressed concerns over the use of Sh8 billion linked to the Hustler Fund, clarifying that the funds in question were not withdrawn from the National Treasury.

In a statement on Thursday, June 19, 2025, Principal Secretary for the State Department for Micro, Small and Medium Enterprise Development, Susan Mang’eni, said that the amount was part of the planned capitalisation but was not accessed during the audit period.

“Contrary to reports appearing in some media, the Sh8 billion in question, which had been allocated as counterpart funding to match the long-term savings of the Hustler Fund, was NOT drawn down from the National Treasury,” said PS Mang’eni.

She explained that the Hustler Fund was initially capitalised with Sh20.2 billion — Sh12 billion was set aside for lending, Sh8 billion for matching long-term (pension) savings, and Sh200 million for operationalisation as outlined in the Public Finance Management (Financial Inclusion Fund) Regulations, 2022.

According to the PS, as of June 30, 2023 — the period under audit — the Hustler Fund was only seven months old, and the matching savings component was still under development.

“It would have been imprudent to withdraw the Sh8 billion only for it to remain idle in commercial banks,” she said. “We finalised the development of the savings product and made the first matching disbursement on the Fund’s first anniversary, on November 30, 2023.”

Mang’eni added that the Parliamentary Public Accounts Committee has requested more documentation and that the Ministry will comply with the request within the two-week deadline.

She emphasized that the Hustler Fund has made a significant impact on millions of Kenyans, noting that over Sh71 billion has so far been disbursed to more than 26 million Kenyans through personal, group, and bridge loan products.

“We have also mobilised close to Sh4.8 billion in both voluntary and mandatory savings,” she added.

Launched on November 30, 2022, the Hustler Fund aims to provide accessible, affordable financial products to Kenyans at the bottom of the economic pyramid, including loans, savings, insurance, and investment opportunities.