The Hustler Fund was launched with a powerful promise: to lift millions of Kenyans out of poverty by giving them access to quick, low-barrier credit. But new data from the 2025 Economic Survey reveals a harsh reality.
Wealthy individuals now dominate the fund, despite it being designed for the marginalized “hustlers.” Over a third of those in the richest wealth bracket have taken Hustler Fund loans, compared to less than a fifth of the poorest Kenyans.
What was meant to be a financial equalizer is quickly becoming a symbol of inequality. The rich are cashing in—and the poor are being left behind.
Wealthy Kenyans Hijack Hustler Fund from the Poor
The Hustler Fund, officially known as the Financial Inclusion Fund, was meant to target the economically vulnerable. It promised small loans with little paperwork, giving informal workers and small traders a chance to grow.
But the numbers tell a different story. According to the latest Economic Survey, the wealthiest Kenyans have become the most aggressive users of the Fund. A staggering 35.8% of people in the highest wealth quintile have tapped into it. Close behind them, 33.5% in the second-highest bracket are also actively borrowing.
In contrast, only 18.7% of individuals in the lowest wealth quintile reported using the Hustler Fund.
This upside-down outcome reveals a serious design flaw. Wealthy users are more likely to be financially literate, digitally connected, and confident navigating mobile lending platforms. Poor Kenyans — who often lack smartphones, reliable internet, or mobile money accounts — are locked out of a program that was created for them.
The Fund’s failure to reach its intended audience points to structural issues. Without targeted outreach and inclusive infrastructure, the Hustler Fund has turned into another system that rewards privilege.
Urban Rich Take the Lead While Poor Stay in the Shadows
Location matters. Urban residents dominate Hustler Fund borrowing at 35.4%. In rural areas, uptake is only 24.2%. That gap underscores the divide between those with easy access to mobile platforms and financial services — and those without.
Age and work also play a role. Most borrowers are between 26 and 35 years old (39.4%), followed by those aged 36 to 45 (34%). Young adults may be more familiar with mobile apps and digital services, making it easier for them to apply.
Business owners and casual workers are the leading categories of borrowers, with 34.9% and 34.5% respectively. But here too, there is a problem. Many poor Kenyans don’t have a registered business or fixed income, and they are less likely to qualify.
Even gender shows disparity. Men borrow more often — 31.8% compared to 26% of women. Despite government rhetoric about empowering women, loan access has remained skewed in favor of men.
This suggests the Fund has quietly evolved into a digital credit scheme tailored more for the middle class and urban youth than the true hustlers it was meant to serve.
Poor Oversight and Fake Borrowers Raise Serious Red Flags
The structural failure isn’t just about who’s borrowing. It’s also about how recklessly the program is run.
Recent audits have uncovered a shocking reality: loans were disbursed to infants, minors, and even people born decades into the future. These findings raise critical questions about how the Hustler Fund verifies applicants.
The Auditor General’s report shows that more than 64% of the loans are now in default. Despite this massive failure, the government has no clear plan for recovering the money. This lack of accountability has prompted Parliament to reject a proposed increase in the Fund’s budget from KSh1 billion to KSh5 billion.
Lawmakers say it’s irresponsible to pump more money into a system that’s leaking badly. Even warnings from Principal Secretaries Susan Mang’eni and Patrick Kilemi, who argue that the fund supports vital economic projects, failed to sway Parliament. MPs are now demanding evidence of performance and proper oversight.
The Fund, once hailed as a revolution in financial inclusion, is quickly becoming a cautionary tale in public finance mismanagement.
Other Funds Suffer While Hustler Fund Consumes the Budget
While billions flow into the Hustler Fund, other key support programs are being gutted.
The Women Enterprise Fund (WEF), for example, saw a shocking 88.1% drop in loan disbursements — from KSh 941.9 million in 2023/24 to just KSh 111.8 million in 2024/25. That crash cut the number of women benefiting from 208,505 to a mere 3,307. Only 310 women’s groups accessed loans this year, compared to 18,955 the year before.
The Uwezo Fund also took a hit. Grants dropped from KSh 239.7 million to KSh 140.7 million, though loans to youth are projected to rise to KSh 324 million.
While youth support increases are welcome, the sharp contrast in how different funds are managed shows a troubling lack of balance. The government seems determined to sink more money into a flawed Hustler Fund while ignoring warning signs and slashing support for programs that actually serve women and marginalized communities.
