Kenya’s flagship financial inclusion project, the Hustler Fund, has seen its budget slashed dramatically in the 2025/26 financial year, raising concerns over the future of affordable credit access for millions of low-income Kenyans.
In the budget statement read by newly appointed Treasury Cabinet Secretary John Mbadi on June 12, the Hustler Fund was allocated a modest Ksh.300 million, a far cry from the Ksh.5 billion the Ministry of Micro, Small and Medium Enterprises (MSMEs) had requested — and a sharp drop from the Ksh.10 billion allocated in 2023/24.
Launched by President William Ruto in November 2022 as a tool to combat predatory lending and empower low-income earners, the Hustler Fund aimed to support more than 15 million Kenyans with loans of up to Ksh.50,000. But high default rates have cast a shadow over the initiative.
As of May 2025, Ksh.65.7 billion had been disbursed, but only Ksh.53.2 billion had been repaid. The Ministry estimates Ksh.6 billion in bad loans, with only 2 million out of 20 million borrowers showing consistent repayment behaviour.
Principal Secretary Susan Mang’eni warned MPs in May that unless additional funding was provided, 4.5 million Kenyans eligible for higher credit limits and new applicants would be left out.
The government has mulled legal and technological methods to recover unpaid loans, including accessing M-Pesa wallets and airtime balances — a move some fear could spark public backlash.
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