The Kenya Human Rights Commission (KHRC) has issued a call for the immediate scrapping of the Hustler Fund, terming it a politically expedient but economically disastrous initiative that has failed to fulfill its promises of financial empowerment for low-income Kenyans.
In a report titled “Failing the Hustlers,” KNRC argues that the fund is structurally flawed, economically unsustainable, and politically manipulated, urging the government to scrap it entirely.
“Despite political rhetoric and publicized success stories, the Fund has neither pushed for financial inclusion nor provided meaningful economic empowerment to its target demographic,” the KNHR noted in the report.
Launched in November 2022 with an initial investment of Sh50 billion, the Hustler fund was labeled as a transformative initiative for the Kenya Kwanza administration’s “bottom-up” economic development agenda.
The fund promised to boost key sectors, including agriculture, housing, healthcare, MSMEs, and the creative economy by providing accessible, affordable credit to millions of Kenyans excluded from the formal financial system.
However, in their study, KHRC reported that the promises have not been met. The study revealed no measurable impact on enterprise or job creation even after the disbursement of over Sh53 billion by 2024.
The reports further indicate that the loan amounts for first-time borrowers, ranging from Sh500 to Sh1,000, were insufficient to start or scale any business.
Additionally, the KHRC claims the fund has a staggering default rate of 68%, indicating that a significant portion of the money disbursed is effectively lost. This suggests the fund is on a path to financial disaster.
“This is not financial empowerment. It is a loss-making scheme disguised as progress,” the commission noted in the report.
The commission argues the fund is unlawful and that reforming it is futile. The commission urges the government to decommission it and redirect resources to more proven initiatives, such as the Women’s Enterprise Fund or the Youth Enterprise Fund.
Read more: Government Plans to Write-off Ksh.6B in Hustler Fund Defaults
