Update On The Hustler Fund With Regard To Auditor General Report For The Period Ending June 30th, 2023
The Mt Kenya Times 
PS Susan Mang’eni
By Susan Mang’eni
The Financial Inclusion Fund (Hustler Fund) was launched on 30th November 2022, with the mandate to innovate, develop, and deploy financial services and products that are affordable, accessible, and suitable for unserved and underserved individuals at the bottom of the pyramid, including credit, savings, insurance, and investment products.
The initial capitalisation of the Fund was KSh20.2 billion, with KSh12 billion allocated towards lending and KSh8 billion as counterpart funding to match the long-term (pension) savings for the Hustler Fund beneficiaries, as envisaged in the Public Finance Management (Financial Inclusion Fund) Regulations 2022, article 7 (1) (f).
KSh200 million was an allocation to support the operationalisation of the Fund.
Contrary to reports appearing in some media, the KSh8 billion in question, which had been allocated as counterpart funding to match the long-term savings of the Hustler Fund, was NOT drawn down from the National Treasury.
By 30th June 2023, the period under audit review, the Fund was 7 months old, and the matching savings product was still being developed. It would have been imprudent for the Fund to draw down the money only to idle in the commercial banks. We finally finalised the development of the savings product, and we undertook the first matching up during the 1st Anniversary of the Fund on 30th November 2023.
We note that the Parliamentary Public Accounts Committee has given us two weeks to provide additional information. We assure the public that we will provide the requested documentation.
In the meantime, the Hustler Fund continues to positively impact the lives of many Kenyans, as intended, a total of KSh 71 billion has so far been disbursed to over 26 million Kenyans in both personal, group and bridge loan products.
We have mobilised close to KSh4.8 billion in savings, both voluntary and mandatory savings.
The Hustler Fund experience has established credit visibility of all its beneficiaries, which has since been crystallised in a Hustler Fund behavioural credit rating system, a nine-band ranging from A-C (A1, A2, A3, B1, B2, B3, C1, C2, C3). Already, over 4.5 million beneficiaries out of the 9 million repeat customers are scoring within A and B grades, demonstrating good creditworthiness.
The bridge product launched last year during the Hustler Fund’s second anniversary is graduating to a 30-day term loan and higher loan limits for good borrowers of the Hustler Fund. The bridge customers have the opportunity to establish a banking relationship and gain banking experience, facilitating their integration into mainstream Financial Institutions for enhanced access to credit for business financing.
We want to assure Kenyans that the Fund remains committed to its objective and purpose of deepening financial and credit inclusion among the most vulnerable segments of the economy. We will continue to develop innovative financial products to address credit market failures and unlock access to affordable credit.
Ms Susan Mang’eni is Principal Secretary, State Department for Micro, Small & Medium Development
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