Govt to punish Hustler Fund defaulters
By David Nthua, September 10, 2025Cabinet Secretary for Cooperatives and MSMEs Development Wycliffe Oparanya, on Wednesday, September 10, 2025, said Kenyans who defaulted on Hustler Fund repayment will face challenges when seeking loans from other financial institutions.
Speaking during an event in Mombasa, Oparanya explained that the government has entered into agreements with banks and microfinance institutions to ensure that loan defaulters under the Hustler Fund program are flagged in the credit system.
“Kama haujalipa Hustler Fund, ukienda kwa benki yoyote watakwambia hawawezi kukupa pesa yoyote,” Oparanya warned.
He noted that the fund was designed to empower ordinary citizens, especially small-scale traders, boda boda operators, and other low-income earners, and was never meant to be abused.
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Oparanya stressed that repayment discipline will help build a culture of financial responsibility and ensure the sustainability of the Hustler Fund.
He pointed out that when borrowers default, it undermines the ability of other Kenyans to access the same support.
Oparanya’s message to business owners
The Cabinet Secretary also encouraged small-scale business owners to work hard and make proper use of the loans to expand their enterprises.
He emphasised that timely repayment not only improves their creditworthiness but also positions them to benefit from future government-backed financial programs.
“The Hustler Fund is not free money. It is an empowerment tool. When you repay, you build trust with lenders and open more doors for your business growth,” Oparanya said.
The Hustler Fund, launched in December 2022 by President William Ruto’s administration, was introduced to provide affordable credit to millions of Kenyans often locked out of the formal financial system.
However, repayment rates have been a recurring challenge, prompting the government to tighten regulations around loan defaults.
Financial analysts argue that linking Hustler Fund performance with access to other financial services could push more Kenyans to repay.
However, critics warn that it may also increase financial exclusion for already vulnerable groups.
As the 2027 elections draw closer, the Hustler Fund remains a key talking point in Kenya’s political and economic space, with leaders promising reforms to make it more effective for ordinary citizens.