Banks to Block Hustler Fund Defaulters From Accessing Loans, Govt Warns
Debt repayment has been an issue facing the government since the launch of the fund in 2022...
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Kenyans defaulting on Hustler Fund loans will be blocked from accessing loans from banks, according to a warning from the Ministry of Cooperatives and MSMEs. This measure aims to increase accountability and repayment rates for the fund, which has disbursed nearly Ksh70 billion to over 26 million Kenyans since 2022.
- Cooperatives Cabinet Secretary Wycliffe Oparanya stated that banks will now check Hustler Fund repayment status before approving new loans.
- A Kenya Human Rights Commission report indicated a 68.3 per cent default rate by the end of 2022; however, President William Ruto claimed an over 83 per cent repayment rate.
- Henry Tanui was recently appointed as the new Chief Executive Officer of the Hustler Fund to enhance its effectiveness and collection processes.
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Government Seeks Funds Through Privatization and Loan Recovery Amid Scrutiny on Ad Spending - September 2025
The Kenyan government aims to rapidly privatize 207 non-strategic public enterprises to raise Ksh149 billion for the current budget, as detailed in the 2025-2026 Financial Year Annual Borrowing Plan. This action is part of a strategy to fill a Ksh613.5 billion budget shortfall. Concurrently, the Ministry of Cooperatives and MSMEs warned that Kenyans who default on Hustler Fund loans will be blocked from accessing loans from banks. This is a measure to increase repayment for the fund which has disbursed nearly Ksh70 billion. Meanwhile, a parliamentary committee is scrutinizing the State Department for Broadcasting and Telecommunications over the expenditure of nearly Ksh500 million on government advertisements, following flags from an Auditor-General's report.
