Kenya Human Rights Commission Calls to Scrap Hustler Fund Citing 68% Loan Defaults, 71% Losses; Government and DP Kindiki Defend Program

The Kenya Human Rights Commission (KHRC) has called for the scrapping of the Hustler Fund, describing it as economically unviable, structurally weak, and politically motivated. The fund, originally intended to promote financial inclusion and support youth entrepreneurship, has reportedly failed to meet its objectives, with a loan default rate of 68% and losses reaching 71%. KHRC's report criticizes the fund's lack of strategic planning and measurable impact on small businesses, recommending that resources be redirected to more sustainable development programs. Experts highlight issues such as corruption, political interference, and misuse of public funds as key obstacles to the fund's success. Government officials have defended the Hustler Fund, dismissing the KHRC report as misleading and politically motivated. Deputy President Kindiki emphasized that empowerment funds should be used for business purposes rather than basic needs like food and clothing. Other analysts note that while borrowing is necessary, the main challenges lie in governance and corruption, not debt itself. Calls have also been made for greater transparency and public oversight in the management of public resources to prevent further losses. The debate continues amid concerns over the fund's future and its role in Kenya's economic development.