For small traders across Kenya, access to affordable credit can determine whether a business expands or struggles to survive. The government-backed Hustler Fund has provided millions of borrowers with small loans to purchase stock, improve businesses and start income-generating activities.
Jane Kiptoo, who operates a fast-food kiosk in Eldoret, first borrowed Sh900 from the Hustler Fund two years ago. After repaying the loan, she continued borrowing as her credit profile improved. Her borrowing limit has now increased to Sh35,000, which she uses mainly to purchase potatoes and other supplies for her chips business.
She says the fund has helped her strengthen her business and has also benefited other small traders around her. Ben Kamau, a motorcycle spare-parts hawker in Eldoret, had a similar experience. After initially borrowing Sh500, he gradually built a borrowing history and can now access up to Sh21,000 to purchase stock.
The Financial Inclusion Fund, commonly known as the Hustler Fund, was launched by President William Ruto in November 2022 as part of the government’s Bottom-Up Economic Transformation Agenda (BETA). According to Hustler Fund Chief Executive Officer Henry Tanui, the programme currently has more than 28 million registered customers and disburses about Sh50 million to roughly 5,000 borrowers each day.
Since its launch, the fund has reportedly issued more than Sh90 billion in loans, with borrowers repaying over Sh76 billion. About Sh13.7 billion remains outstanding. Tanui said approximately 10 million customers are repeat borrowers, indicating that a significant number have continued using the platform after successfully repaying previous loans.
The Hustler Fund can be accessed through the *254# USSD service. Personal loans start from Sh500 and go up to Sh50,000, while bridge loans can reach Sh150,000. Borrowers requiring larger amounts may be connected to banks.
Esther Musyoka, a salon operator in Mlolongo, Machakos County, borrowed Sh3,000 in 2024 to expand her business. She used the money to purchase salon equipment and hair products while expanding the services offered to customers. According to Musyoka, the additional investment helped attract more clients and increase her income, allowing her to support her family.
Tanui said about 60 per cent of Hustler Fund borrowers are below the age of 40, highlighting the programme’s role in providing financing to young Kenyans facing limited employment opportunities. He noted that the 10 million repeat borrowers could potentially contribute significantly to job creation if their businesses continue expanding and hiring workers. Some businesses have also accessed much larger cumulative amounts through repeated borrowing and repayment.
Government officials say the Hustler Fund was created to address the difficulties faced by millions of Kenyans operating in the informal economy. Moses Banda, a financial inclusion adviser in the Executive Office of the President, said approximately 17 million of Kenya’s 21 million workers operate in the informal sector.
Many of these workers have limited financial histories, making it difficult to qualify for traditional bank loans. For small businesses requiring only a few thousand shillings, conventional financial institutions may not provide suitable products. Government officials argue that affordable digital credit can help bridge this gap and reduce reliance on expensive informal lenders.
Financial exclusion extends beyond small traders to smallholder farmers. Banda said millions of farmers who contribute significantly to the country’s economy continue to face difficulties accessing formal credit to increase production. The government hopes that initiatives such as the Hustler Fund will make affordable financing more accessible to underserved groups and help them grow their economic activities.
Despite the positive experiences reported by some borrowers, the programme has also faced challenges involving loan repayment. Andrew Kiyeng from Eldoret said he borrowed Sh500 after the fund was launched but spent the money without being able to repay it.
Another borrower, 28-year-old Alan Sirima from Machakos, said he accessed a Sh500 loan once but has not returned to the platform. He said some people he knows defaulted on their loans, while others used the money to establish or expand small businesses. These experiences highlight the importance of financial management and business knowledge alongside access to credit.
Dr David Kabata, a lecturer in entrepreneurship and innovation at Kirinyaga University, has urged the government to provide business training to people seeking start-up loans. The chairman of the Nyamira Professionals Association, Charles Otwori, also called for partnerships between the Hustler Fund and professional organisations to provide borrowers with financial literacy and business skills. He argued that training could help borrowers make better decisions and improve their chances of successfully repaying loans.
The Hustler Fund has responded to the need for financial education by introducing the Tukuze App, which is designed to provide capacity-building support to borrowers. Tanui said the programme has partnered with Strathmore University and the African Management Institute to train leading borrowers who have demonstrated responsible borrowing and saving habits. The initiative is expected to gradually expand to more beneficiaries, with financial literacy identified as an important component of improving financial inclusion.
The Hustler Fund has emerged as an important source of small-scale credit for millions of Kenyans, particularly those operating outside the traditional banking system. While successful borrowers say the loans have helped them expand businesses and increase income, challenges such as loan defaults, limited business knowledge and economic pressures remain.
Experts and officials say combining affordable credit with financial education, business training and a supportive economic environment will be crucial if the programme is to deliver sustainable benefits to Kenya’s small businesses.
