Chelugui: Implementation of Hustler Fund was fast, but the idea is brilliant
By Nancy Marende, October 7, 2025Former Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs), Simon Chelugui, has described the Hustler Fund as a transformative initiative aimed at deepening financial inclusion, but admitted that its implementation was rushed.
Speaking at a local TV station on Monday, October 6, 2025, Chelugui said the concept behind the Hustler Fund was “brilliant” because it sought to address access to affordable credit.
“The implementation of the Hustler Fund was fast, but the idea is brilliant. We have so many Kenyans closed out of financial inclusion, and access to finance has been found to be the biggest enabler in fighting poverty and promoting human development,” Chelugui said.
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He noted that the government intended to tackle financial exclusion head-on by providing low-interest loans to small-scale traders and ordinary Kenyans who are often unable to access traditional banking services.
However, Chelugui acknowledged that the reforms and systems he had envisioned to support repayment and sustainability were not fully implemented, which affected the fund’s effectiveness.
“The reforms and plans I put in place, which included linking the Hustler Fund to other instruments to ensure repayment, have not been successful,” he explained.
“We needed to create synergy between our digital networks so that we could identify, isolate, and train those who are lagging behind while promoting those who are repaying the loan.”
Chelugui stated that the ultimate goal was to transition beneficiaries from Hustler Fund borrowers to mainstream banking customers, thereby helping them develop financial discipline and creditworthiness.
Despite the challenges, he expressed optimism that the fund could still succeed if properly managed and supported through continuous sensitization and financial education.
“I still think if given time, those who defaulted could repay. It all depends on how we sensitize them and the roadmap to transitioning to mainstream financial services. If you have hope that you will grow to the next level from here, you’re more motivated to repay the loan. If you have no hope of benefitting from good behaviour, you will not be motivated to repay,” he added.