PS defends move to seek additional funding of Ksh5 billion for the Hustler Fund

State Department for Micro, Small, and Medium Enterprises (MSMEs) Principal Secretary Susan Mang’eni, has defended the department’s move to seek additional funding of Ksh5 billion for the Hustler Fund.

The PS while speaking during the 42nd Annual Institute of Certified Public Accountants of Kenya (ICPAK) Seminar in Mombasa, Mang’eni underscored the fund’s importance in providing financial access to Kenyans with  low-income.

She added that majority of Kenyans at the bottom of the economic pyramid could not access affordable credit due to a lack of visibility in formal financial systems.

“Other lenders demand collateral such as pay slips, logbooks, or title deeds, which many cannot provide but the Hustler Fund was designed to fill this gap by offering unsecured loans through a simple application process accessible through mobile phones,” she said.

Mang’eni noted that the fund has reached more than 25.8 million Kenyans, since its inception.

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Kenyan beneficiaries begin with personal loan limits ranging from Sh500 to Sh50,000, with the potential to grow their limits through consistent borrowing and timely repayment.

“The uptake has been impressive. Every day we disburse over Sh50 million,” she noted. “However, as users build their credit limits, there is a growing need for additional capitalization to sustain and expand access.”

During National Assembly’s Trade Committee meeting the Principal Secretary had disclosed that Ksh5 billion to Ksh6.3 billion is at risk of being written off if ongoing recovery efforts fail.

The department had released  Ksh65.7 billion and recovered Ksh33.2 billion, the fund’s budget for 2025/26 was slashed to Sh1 billion from Sh2 billion, prompting the urgent request for additional funding.

Treasury allocated only Ksh5.59 billion to the MSME State Department for 2025/26, with Ksh3.76 billion earmarked for development.

By Obegi Malack

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