Gov’t Hits Back at KHRC Over Hustler Fund Report
The CS also dismissed the misconception that the government had placed Ksh 50 billion in the Fund. He clarified Ksh 14 billion
Independent studies, including those done by the Central Bank of Kenya, show that the Fund is stepping up agricultural lending and financial inclusion, Oparanya said.Photo /KBC Digital
By Juliet Jerotich
The government labeled as political, misleading, and full of factual inaccuracies a Kenya Human Rights Commission (KHRC) report that blamed the Hustler Fund for failure. The officials labeled it as political and dismissive.
Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya referred to Monday the report as hurriedly drawing conclusions from just seven months’ worth of data. He added that it was founded on an incomplete review by the Auditor General.
“Our notice has been brought by a politically disguised report by KHRC on the failure of the Hustler Fund. Its own title reveals bias,” Oparanya said.
He added that during the 2022/2023 financial year, the Fund had lasted for only seven months. “They used a report by the Auditor General which had not made any definite findings,” he went on.
KHRC’s report, released earlier on Monday, described the Hustler Fund as politically motivated and economically risky. It termed it unsustainable and manipulated, calling for the elimination of the program.
Oparanya criticized KHRC for failing to consult his ministry or the management of the Fund while undertaking their study. “We were never approached. The management of the Fund was also not consulted. A genuine study should be professional enough,” he said.
The CS also dismissed the misconception that the government had placed Ksh 50 billion in the Fund. He clarified that only Ksh 14 billion has been made available, and it has already grown into a portfolio of Ksh 72 billion.
“Now the Fund is less reliant on the exchequer. We have developed products with banks to allow beneficiaries to transition into formal financial systems,” he added.
Oparanya has said that the Hustler Fund has disbursed Ksh 72 billion since it was launched. Ksh 60 billion of it has already been redeemed. The Fund is digitized and accessed via the use of *254# on feature and smartphones. It offers individual loans of up to Ksh 50,000 and bridge loans up to Ksh 150,000.
“Report falsely reports that loans are between Ksh 500 and Ksh 1,000. In fact, the ceilings have always been Ksh 50,000. Some of the beneficiaries are now receiving up to Ksh 150,000,” said Oparanya.
He also added that default rates have dropped to 20 percent, not 68.3 percent, as stated. The Fund has carried out credit repair schemes, mobilized over Ksh 5 billion in savings, and led the development of behavioral credit rating.
Independent studies, including those done by the Central Bank of Kenya, show that the Fund is stepping up agricultural lending and financial inclusion, Oparanya said.
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