Members of Parliament have raised concerns over about Sh12 billion from the Financial Inclusion Fund, popularly known as the Hustler Fund, that has yet to be recovered from borrowers.
The issue emerged during a session of the National Assembly’s Special Funds Accounts Committee, chaired by Mombasa Woman Representative Fatuma Zainab, while reviewing the Auditor General’s report on the fund.
During the meeting held at Bunge Tower, lawmakers questioned officials from the fund, including Chief Executive Officer Henry Tanui, on how the programme has been managed and the status of loan repayments.
The Hustler Fund was introduced to expand access to affordable credit for ordinary Kenyans. However, legislators expressed concern over the large amount of money that remains unpaid.
Committee members said the Sh12 billion should not be treated as just a figure in a report, stressing that it represents public money that must be properly accounted for and recovered.
Officials told the committee that the fund has grown significantly since it was launched and that new measures are being considered to improve loan recovery.
Among the proposals is the use of identification and location data linked to borrowers’ national identification cards to help trace those who have defaulted on their loans. The move is expected to strengthen follow-up efforts and prevent borrowers from avoiding repayment by changing phone numbers or discarding SIM cards.
The committee was also informed that authorities have received approval from the Office of the Data Protection Commissioner to access records linked to about 20 million registered users. The data will be used to improve monitoring and track borrowers more effectively.
While welcoming the steps being taken, lawmakers said a clear and enforceable recovery plan must be implemented quickly to prevent further losses and maintain public confidence in the programme.
The committee said it will continue monitoring the management of the fund and will require detailed explanations on governance, borrower tracking and measures to prevent losses.
“Every shilling from the Hustler Fund must serve its intended purpose. We must protect public resources and ensure initiatives meant to empower citizens function effectively,” Zainab said.
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