Speaking during a Presidential Private Sector Roundtable I’m Nairobi, President Ruto said the revolving fund which was rolled out in November 2022 has been a success given the amount disbursed during the three years period.
“Our critics – the naysayers, the perpetual pessimists, the chorus that never sees anything working in Kenya – would have you believe that the Hustler Fund is a total failure,” he stated.
In its study dubbed Failing the Hustlers, the commissions called on Parliament and the Executive to wind up the fund which it says has failed in its financial inclusion objective given the losses and high default rates.
“Evidence has further shown that there has been a significant misallocation of public funds via the Hustler Fund, with a default rate of 68.3pc, a net loss of 71.5pc, and an opaque governance structure flagged by the Auditor General,” said KHRC.
However according President Ruto the claims by KHRC are false.
“And now, those same critics are spreading fear and despondency by falsely claiming that the Fund has a 60pc default rate. That is a deliberate distortion of facts. The truth – backed by data – is that the Hustler Fund has a recovery rate of 83.3pc, nearly identical to that of the formal banking sector, whose repayment rate stands at 83.6pc,” said the President.
Since establishment, Ksh 74 billion has been disbursed to 26 million Kenyans with at least Ksh 5 billion mobilised in savings.
President Ruto further defended micro-loan of Ksh 1,000 being extended to borrowers which the commission termed too small to start a meaningful venture including its 14-day repayment period.
“We will not be distracted by the merchants of doom and negativity, those who, when facts do not serve their agenda, resort to fabricating narratives to prop up their falsehoods. We remain unfazed in building a new, inclusive, fair and equitable society, and I count on the private sector, an essential ally and collaborator, in this quest,” said Ruto.
He further assured the private sector that the government is committed to addressing priority issues which have been raised by industry players.
Ronald Owili
