Launched in November 2022 as a cornerstone of President William Ruto’s Bottom-Up Economic Transformation Agenda, the Hustler Fund, officially the Financial Inclusion Fund, has disbursed over KSh 68.8 billion to more than 26.5 million Kenyans, targeting the unbanked and underserved with affordable digital credit.
By early October 2025, total repayments stood at KSh 56.5 billion, with 75.2 million transactions processed.
However, the fund faces scrutiny over high default rates, budget cuts, and governance issues, even as new features like the Bridge Loan aim to reward responsible borrowers.
This guide covers the latest developments as of October 2025, including loan products, eligibility, application steps, defaults, and policy shifts.
Key Statistics and Performance (as of October 3, 2025)
The fund’s growth has been rapid, but recovery challenges persist:
| Metric | Value | Notes |
|---|---|---|
| Total Disbursed | KSh 68.9 billion | Up from KSh 57.8 billion in September 2024. |
| Total Repaid | KSh 56.5 billion | Repayment rate ~82% claimed by government; critics cite 68% default. |
| Active Users | 26.6 million | Covers ~half of adult Kenyans; urban usage at 35.4%. |
| Monthly Disbursements | ~KSh 13 billion | Driven by economic pressures and credit denials elsewhere. |
| Defaults Outstanding | ~KSh 8.7–11 billion | Affects ~10 million borrowers; 64–68% NPL ratio per audits. |
These figures highlight the fund’s scale but underscore sustainability concerns, with losses estimated at KSh 340 per KSh 500 loaned.
Latest Updates: What’s New in 2025?
2025 has brought refinements amid criticism. Key changes include:
Bridge Loan Expansion (Launched December 2024, Enhanced 2025):
For top-rated borrowers (A1–B2 scores), limits tripled to KSh 150,000–200,000 with 30–60 day terms (vs. 14 days for personal loans).
Over 2 million eligible; 600,000+ active. Rollover at 9.5% interest post-30 days. Includes 5% auto-savings (70% long-term, 30% short-term accessible after 15 days). Aims to bridge to formal banking.
Budget Slashed to KSh 1 Billion:
From KSh 2 billion proposed, reflecting poor recovery. The government sought KSh 5–6 billion more but was denied; a potential Sh6 billion write-off is under review.
SHA Integration Clarified (June 2025):
Defaulters can access Social Health Authority (SHA) “Lipa Ule Pole Pole” premiums via fund limits up to KSh 4,900 for 4.9 million eligible. No automatic bar for defaults, but repayment urged.
Blacklisting for Defaulters (September 2025):
Defaults are now shared with Credit Reference Bureaus (CRBs), barring access to banks/Saccos for up to 5 years. Ties to NYOTA grants and other MSME supports. No full amnesty, but tied incentives for settlement.
New CEO Appointed (September 3, 2025):
Henry Tanui (ex-Ecobank, Consolidated Bank) replaces Elizabeth Nkukuu for 4 years. Focus: Recovery, financial literacy, and performance-based lending.
READ ALSO:A Guide to Hustler Fund Loans: How to Apply and Repay in Kenya
Criticism and Reforms:
KHRC’s August 2025 “Failing the Hustlers” report calls for shutdown over 68.3% defaults, debt cycles, and opacity (no initial oversight board). President Ruto defended it, citing 83% repayment and a KSh 72 billion impact. Shifts to group loans (KSh 20,000–1 million) and community targeting to reduce misuse.
Wealthy Borrower Trend:
The 2025 Economic Survey shows 35.8% usage in the highest wealth quintile vs. 18.7% in the lowest, undermining the “hustler” focus.
Loan Products: Personal, Bridge, and Group
The fund offers tiered products based on your Hustler Rating (A1 excellent to C3 poor), reviewed monthly.
| Product | Limit | Term | Interest | Eligibility | Key Features |
|---|---|---|---|---|---|
| Personal | KSh 500–50,000 | 14 days | 8% p.a. | All registered users | Instant via *254#; 5% auto-savings. Starts low for newbies. |
| Bridge | Up to 3x Personal (KSh 150K+) | 30–60 days | 8–9.5% p.a. | A/B ratings; good history | Rollover option; builds formal credit. For business expansion. |
| Group | KSh 20,000–1M | Varies | 8% p.a. | Registered groups (5+ members) | SACCO-linked; defaulters ineligible. Targets MSMEs. |
95% of personal loans auto-save 5%; early repayment boosts limits by up to 100%.
Eligibility and Application Steps
Open to Kenyans 18+ with a Safaricom/Airtel/Telkom line (3+ months active). No collateral; tied to ID/SIM.
- Register/Check Eligibility: Dial *254# > “Hustler Fund” > Enter ID > PIN. Or M-PESA app > “Loans & Savings” > Hustler mini-app.
- View Limit/Rating: Select “Check Limit” or “My Loans.”
- Apply: “Borrow” > Amount (≤ limit) > Confirm. Funds in M-PESA instantly (95% disbursed, 5% saved).
- Bridge Opt-In: For eligible, *254# > “Bridge Loans” > Accept terms.
- Group: Register via app/SACCO; apply collectively.
New users start at KSh 500; consistent repayment unlocks higher tiers.
Repayment: How It Works and Defaults
- Methods: *254# > “Repay” > Amount > PIN (full/partial; cents OK). Or mini-app. No fees beyond interest.
- Defaults: Freeze account; no new loans until full clearance (principal + interest). Prolonged (30+ days) triggers CRB listing. Partial payments reduce accrual but don’t unfreeze.
- Restoration: Repay in full > Wait 24–48 hours > Reapply for a small loan to rebuild rating. No automatic forgiveness, but SHA-linked settlements are possible.
- Tips: Repay early for boosts; avoid for consumption. High defaults (64–68%) from economic woes, low limits, and misuse.
Challenges and Criticisms
- Debt Traps: Mandatory 5% savings reduces utility; borrowers cycle loans for higher limits.
- Sustainability: 71.5% net loss to taxpayers; no audit trails flagged by the Auditor-General.
- Equity Issues: Wealthier/urban users dominate; rural/low-income lag.
- Governance: Political tool per KHRC; lacks transparency on allocations.
Government counters: Transformed lives (e.g., boda riders scaling to KSh 200K loans); focuses on recovery via M-PESA raids and literacy programmes.
Future Outlook
With underfunding and reforms, expect tighter targeting (e.g., productive groups) and tech upgrades like Fuliza integration.
Ruto eyes phase two: KSh 200K–1M group loans for MSMEs. Success hinges on dropping defaults below 20%, all vital for Vision 2030’s inclusion goals.
The Hustler Fund empowers when used wisely: borrow for income (stock, tools), repay promptly, and save the 5%. For help, call 0800 700 700 or visit Huduma Centres. Share your story or questions below.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
