State introduces incentive to boost Hustler Fund repayment amid growing defaults

The government has launched a new business support programme for responsible Hustler Fund borrowers as it seeks to improve loan repayment and strengthen micro-enterprises, amid growing concern over an estimated Sh12.5 billion in defaulted loans.

The initiative comes at a time when the Hustler Fund borrowers have defaulted on about Sh12.5 billion in loans, representing an active default or non-repayment rate of about 15 per cent to 20 percent of the Sh90 billion that has so far been distributed to 28 million borrowers.

Last week, the fund, which has a partnership with Strathmore University and African Management Institute (AMI) said the new initiative dubbed Tukuze Hub provides training, financial literacy and documentation of successes.

Addressing a town hall baraza at Coast Car park in Mombasa county, the Hustler Fund representative Geoffrey Ochande said the initiative helps selected borrowers identify new opportunities, increase their incomes and build stronger businesses.

Strathmore University and AMI are experienced in business training and enterprise development across Kenya.

“Selected borrowers, identified based on their good repayment record, received an SMS inviting them to a short interview with a member of the Hustler Fund team. The interview confirms eligibility and provides more information about Tukuze Hub and the support available,” said Ochande.

He said the Hustler Fund baraza is designed as an interactive business forum that goes beyond a traditional government event.

He said the meeting aims to celebrate responsible borrowers, strengthen financial literacy, and promote a culture of responsible borrowing and timely repayment while connecting entrepreneurs to opportunities that support business growth.

He said through engaging discussions and direct interaction with Hustler Fund leadership, National and County Government leaders, financial institutions, business support partners, entrepreneurs and participants gain practical knowledge to strengthen and grow their enterprises.

“The baraza seeks to leave entrepreneurs inspired to adopt sound business practices and take advantage of the many opportunities available to expand their businesses. Central to this vision is the introduction of Tukuze Hub, which will be positioned as a key reward for responsible Hustler Fund borrowers.

“The Hub demonstrates how responsible borrowing can unlock access to business development support, helping entrepreneurs build stronger enterprises, create jobs, and contribute to Kenya's economic growth,” he stated.

Ochande described the forum as an opportunity to engage directly with beneficiaries, celebrate their achievements, and gather feedback to strengthen financial inclusion.

He reaffirmed that the Hustler Fund was established  to expand access to affordable financial services for Kenyans who have traditionally been excluded from formal finance, noting that the Fund's success should be measured not only by the amount of credit disbursed but by the positive impact it has on people's lives and businesses.

He emphasised the importance of beneficiary success stories in demonstrating the Fund's real impact and highlighted the Fund's partnerships and stakeholders to strengthen impact measurement and inform future improvements.

He stated that the Fund aims to move beyond providing credit by promoting responsible borrowing, savings, financial capability, stronger enterprise growth, and deeper financial inclusion.

He encouraged beneficiaries to borrow with purpose, invest wisely, save consistently, and repay their loans responsibly, while calling on all stakeholders to work together to ensure that the people of Mombasa derive even greater value from the opportunities created by the Hustler Fund.

AMI programme manager Ms Mercy Murigi and Strathmore University associate director for grants Mr Cavin Otieno emphasised that their institutions' core mandate is to empower Micro, Small and Medium Enterprises (MSMEs) through targeted capacity building, financial literacy, and business development support.

They noted that equipping entrepreneurs with practical skills, financial management knowledge, and sustainable business practices is essential to strengthening enterprises, enhancing their resilience, and accelerating their growth and long-term success.