Jane Kiptoo runs a fast-food eatery in Eldoret City. Two years ago, she heard about the Hustler Fund and borrowed her first Sh900.
She promptly repaid it and has never stopped borrowing. Today, Kiptoo's loan limit has grown to Sh35,000.
"I have been using the money to buy stock, especially potatoes because I mostly sell chips and a few other fast foods at my kiosk," she said.
"The fund is a great idea that has enabled me and many of my friends to strengthen their businesses or start income-generating activities."
Ben Kamau is a hawker who sells motorcycle spare parts to boda boda riders in the city.
Initially, he borrowed Sh500 and built his profile on the Hustler Fund platform. Now he can borrow up to Sh21,000 to buy stock.
Financial inclusion and support for micro, small and medium-sized enterprises (MSMEs) is the second pillar of the Kenya Kwanza administration's Bottom-up Economic Transformation Agenda (BETA).
President William Ruto launched the Financial Inclusion Fund, popularly known as the Hustler Fund, on November 30, 2022.
"Currently, in our portfolio, we have more than 28 million Kenyans and, on a daily basis, we serve 5,000 of them, borrowing about Sh50 million," Hustler Fund CEO Henry Tanui told the Star.
"Since inception, we've disbursed more than Sh90 billion to Kenyans. We have beneficiaries or borrowers in every county. They have repaid more than Sh76 billion and currently what is outstanding is Sh13.7 billion."
Out of the 28 million registered customers, 10 million are repeat borrowers, Tanui said.
The fund is accessible by dialling *254#. Personal loans range from Sh500 to Sh50,000. Bridge loans have a limit of Sh150,000. Borrowers seeking more than that amount are assisted through banks.
"Those who have already established a track record, who have some data that can show they are responsible borrowers, we will be transitioning them to the banking sector," Tanui said.
The loan interest rate is capped at eight per cent per annum. Of the total approved loan amount, 95 per cent is deposited into the borrower's mobile money wallet, while the remaining five per cent is deposited into a savings account under the fund.
Borrowers have saved Sh7 billion since the fund was launched.
"More than 275,000 Kenyans have voluntarily saved their money with the Hustler Fund. They are not borrowing, but they have voluntarily saved more than Sh800 million," Tanui said.
"What does that tell you? That Kenyans have great confidence in the fund. And the beauty of the Hustler Fund is that you don't have to ask anybody any question. You just dial *254# from the comfort of your own home and access all the services."
Esther Musyoka is a 42-year-old salon owner and mother of seven living in Mlolongo, Machakos county.
Like many micro-entrepreneurs in informal settlements, Musyoka struggled with a lack of capital to grow her business. In 2024, she borrowed Sh3,000 from the fund to boost her salon.
"The loan enabled me to buy additional salon equipment, stock hair products and expand my services. That helped me attract more clients and increase my daily income, enabling me to sustain the business and provide for my family," she said.
Tanui said 60 per cent of borrowers are aged below 40 years, meaning the majority are young people who are most affected by unemployment.
"We have 10 million repeat borrowers. If each of them employed just one person, they would create 10 million jobs and solve the unemployment problem," Tanui said.
While most borrowers apply for small amounts, there are outstanding cases of individuals who have already borrowed millions of shillings cumulatively from the fund.
"One of our borrowers operating a shop near a university has borrowed cumulatively Sh12 million. He borrows, pays online for the goods and they are delivered to his shop. So, he doesn't leave his shop anymore, and the students flock there to buy," Tanui said.
Financial inclusion is one of the country's most difficult challenges.
Moses Banda, the financial inclusion adviser in the Executive Office of the President, said that, out of Kenya's labour force of 21 million, 17 million workers are in the informal sector.
"These people have not had any financial profile over the years for them to be able to operate in a conventional banking environment and borrow," he said.
"The Kenya Kwanza government, through the Bottom-up Economic Transformation Agenda, under the MSME and financial inclusion pillar, strives to remove barriers that prevent the 17 million people in the informal sector from accessing finance."
The amount of money many micro-enterprises require is quite small.
"The guy who roasts maize on the roadside requires a loan of Sh1,000 to buy a bag of charcoal and maize and sit out there to earn a living. There are over 300,000 people in this country who make their living from roasting maize to support their families," Banda said.
"They cannot borrow Sh1,000 from any bank, SACCO or microfinance institution. In a bank, Sh1,000 is an account management fee. That's what Kenyans require, Sh1,000. And if they borrow it, it is from a shylock who charges them 10 per cent per day."
The Hustler Fund is intended to end such exploitation and the exclusion of the majority of Kenyans from the formal financial ecosystem, Banda said.
The presidential adviser said there are 14 million smallholder farmers who feed the country, but most of them cannot access bank loans to increase production.
"A sector that contributes 40 per cent of GDP, employs 70 per cent of rural residents, yet can access less than five per cent of bank financing? There's a problem," he said.
"One of the things that the President was asked by the people of Kenya during his economic forums in the counties was to introduce an intervention that would make money accessible and affordable. He promised to create the Hustler Fund."
But not every borrower has reported a success story.
Andrew Kiyeng in Eldoret said that when the fund was launched, he was not engaged in any business activity. He borrowed Sh500, spent it, but failed to repay it.
"The Hustler Fund is a good idea that was designed to help low-income people access funding for business and other needs, but for some of us, repayment became a major challenge," he said.
Alan Sirima, a 28-year-old resident of Machakos, said he took a Sh500 loan once but has never borrowed again.
"I have heard different stories from friends and people in our community. Many of my friends defaulted and stopped taking loans," Sirima said.
"At the same time, I've heard of others who tried to start small ventures with the loans, like selling boiled eggs on the roadside, opening small kiosks and mama mbogas who say they used the money to expand stock for their vegetable businesses. Honestly, I am not sure how far Sh500 can go."
Dr David Kabata, a lecturer in entrepreneurship and innovation at Kirinyaga University, said many Kenyans need business training before applying for start-up loans (see Expert Comment).
He also advised the government should create a conducive business environment, as the high cost of living and high taxes have suppressed consumer demand.
The chairman of Nyamira Professionals Association, Charles Otwori, suggested that the Hustler Fund should partner with organisations such as his to train borrowers in financial literacy.
"Give us the list of the people who have benefited from the Hustler Fund. Let's have an MoU, and we can build their capacity at minimum cost," Otwori said.
Fund CEO Tanui said the organisation has launched the Tukuze App for capacity building.
"Tukuze means 'let's grow'. We started last week with Mombasa county. We have partnered with Strathmore University and the African Management Institute to provide capacity building for the top borrowers, who have demonstrated the ability to borrow and save regularly," he said.
"We want to start with those people and then roll it out to all the others because financial literacy is key to unlocking financial inclusion."
