President William Ruto has taken a swipe at Kenyans who borrowed from the government’s flagship Hustler Fund and failed to repay their loans, saying their default was ultimately self-destructive.
Speaking on Friday, November 7, President Ruto dismissed concerns that the government might pursue loan defaulters, stating that those who took the money and vanished had only shortchanged themselves.
“There are people who took Ksh500 from the Hustler Fund and ran away with it. The loss is yours. Use your brains, my friends. That Ksh500 you ran away with, no one will come after you for it,” the President said.
His remarks come amid growing concern over billions of shillings in unpaid Hustler Fund loans, following revelations that the initiative has recorded significant defaults since its launch in 2022.
Earlier this year, Micro, Small, and Medium Enterprises (MSME) Development Principal Secretary Susan Mang’eni told the National Assembly Committee on Trade, Industry, and Cooperatives that over 10 million Kenyans defaulted on Hustler Fund loans worth about Ksh6 billion.
Mang’eni noted that while the government is contemplating writing off the bad loans, measures are being explored to prevent future defaults and encourage responsible borrowing.
“They never repaid, and that’s what we will be seeking to write off. The portfolio that is totally at risk and is in default is between Ksh5 billion and Ksh6 billion,” she said, adding that recovery mechanisms would soon be introduced through incentives and possible sanctions.
She explained that defaulters could be barred from accessing future government opportunities, while active borrowers might receive enhanced loan limits as a reward for discipline.
Despite the losses, Mang’eni defended the overall performance of the Hustler Fund, revealing that 9 million borrowers remain active, with total repayments amounting to Ksh53.2 billion out of Ksh65.7 billion disbursed.
She has since appealed to Parliament to allocate an additional Ksh5 billion in the 2025/2026 financial year to expand the program and empower consistent borrowers.
President Ruto launched the Hustler Fund shortly after assuming office in December 2022, branding it a revolutionary tool to uplift low-income Kenyans through accessible, interest-free digital loans.
However, the scheme has faced criticism over poor repayment rates and limited economic impact — concerns the President appears keen to address through a mix of tough talk and financial realism.
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