The Principal Secretary for the State Department for Micro, Small, and Medium Enterprises (MSMEs), Susan Mang'eni, has defended the department's move to seek additional funding for the Hustler Fund initiative amid concerns over its effectiveness and loan repayment rates.
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 low-income Kenyans who traditionally lack access to formal credit. "When we launched the Hustler Fund, we were addressing a market failure," Mang'eni said. "The 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." She further explained that traditional lenders often require collateral such as pay slips, logbooks, or title deeds, which many citizens cannot provide but the Hustler Fund was designed to fill this gap by offering unsecured loans through a simple application process accessible even on basic mobile phones via the *254# USSD code, with no airtime charges incurred.
According to Mang'eni, the fund has reached 25.8 million Kenyans, approximately three-quarters of the adult population, since its inception.
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.
