The Ministry of Cooperatives and MSMEs Development has dismissed a report by the Kenya Human Rights Commission (KHRC) recommending the scrapping of the Hustler Fund, describing it as misleading, politically motivated, and lacking in professionalism.
In a statement issued on Monday, August 4, Cabinet Secretary Wycliffe Oparanya criticised the KHRC report, saying it was riddled with inaccuracies and based on flawed methodology.
“Our attention has been drawn to a report widely circulated by the Kenya Human Rights Commission claiming the failure of the Hustler Fund, drawing conclusions that are politically veiled. The title of the report explicitly betrays the whole purpose of the study,” the statement read in part.
Oparanya accused the KHRC of generalising data from the Fund’s first month of operation between November and December 2022 to make sweeping conclusions, which he said undermined the credibility of the study.
“Of critical concern is the attempt by the report to generalise the findings of the first month of the Fund period… This questions the level of professionalism and the integrity of the data instruments and the processes that were deployed,” he stated.
The CS further noted that the ministry, which oversees the Fund, was never consulted by the researchers, nor was the Hustler Fund Secretariat involved at any stage.
“If the NGO was genuine in its pursuits, they would at least have adhered to the professional ethical standards that govern such studies,” the ministry said.
Oparanya also questioned the timing of the report’s launch, suggesting it was deliberately aligned with the anniversary of the 2024 Finance Bill protests to serve a political agenda.
“Looking at some of the conclusions and premature recommendations, it is sufficient to say that the purpose of this malicious and contemptuous unprofessional study was to provide a tool for public incitement against the transformative reform agenda that President Ruto is presiding over,” he stated.
The ministry rejected claims that the Hustler Fund had been capitalised with Ksh50 billion, clarifying that only Ksh14 billion had been injected so far. According to the statement, the Fund has since grown into a portfolio worth over Ksh72 billion, reducing its reliance on the exchequer.
Responding to allegations that the Fund is inaccessible, Oparanya said the platform is available through the *254# USSD code, usable on both feature phones and smartphones, and has so far served more than 26 million Kenyans.
He criticised the report for evaluating the Fund’s performance based solely on one financial year, ignoring its two-and-a-half-year impact and the broader digital lending landscape in Kenya, where the average loan size is around Ksh250.
“The report fails to appreciate that the Fund was introduced as a credit repair mechanism for millions of Kenyans negatively listed by CRBs following the COVID-19 pandemic,” Oparanya said, adding that the Fund has helped millions rebuild their credit histories.
He further dismissed claims that Hustler Fund loans range between Ksh500 and Ksh1,000, noting that the personal loan product allows borrowing of up to Ksh50,000, while the Bridge Loan product offers up to Ksh150,000 with a 30-day term and an annual interest rate of eight percent.
Additionally, Oparanya said over nine million Kenyans borrow from the Fund regularly, with more than five million showing consistent repayment behaviour and gradually being upgraded to higher loan limits.
He disclosed that the Fund disburses an average of Ksh68 million per day in personal loans and Ksh27 million daily through the Bridge product. Of the Ksh72 billion disbursed to date, over Ksh60 billion has already been repaid.
The ministry also revealed it is developing a behavioural credit rating system based on Hustler Fund data to reduce reliance on traditional collateral-based lending.
“The Fund experience has created credit visibility of the 26 million customers, which has now been crystallised in a Hustler Fund behavioural credit rating system… We are currently institutionalising the credit score to take it to the market,” Oparanya explained.
He concluded by warning against the use of flawed research to undermine a national initiative that millions depend on.
“It is therefore prematurely erroneous for the NGO to publish a skewed report devoid of facts and whose motive is to incite the public against the administration,” the CS said.
“We wonder which human rights they are defending if they demand the scrapping of the Fund based on its nascent experience. Who defends the over nine million beneficiaries who borrow from the Fund regularly?”
