The Ministry of Cooperatives and MSMEs Development has rejected a report by the Kenya Human Rights Commission (KHRC) that calls for the scrapping of the Hustler Fund.
In a statement issued on Monday, August 4, Cabinet Secretary Wycliffe Oparanya dismissed the report as misleading, lacking professionalism, and driven by political bias.
“Our attention has been drawn to a report widely published by the Kenya Human Rights Commission claiming the failure of the Hustler Fund, drawing conclusions that are politically veiled. The title of the report explicitly betrays the whole purpose of the study,” the statement read.
Oparanya defended the fund’s impact and questioned the motives of the KHRC’s report. He slammed the research methodology that was used in the report as being premised on flawed and early data.
Flawed Data and No Stakeholder Input, Says CS
CS Oparanya at the same time took issue with the report’s reliance on findings from the Fund’s first month of operation, November to December 2022, arguing that the short window could not be used to form meaningful or fair conclusions.
“Of critical concern is the attempt by the report to generalise the findings of the first month of the Fund period (between November 2022–December 2022) to draw immature conclusions and recommendations. This questions the level of professionalism and the integrity of the data instruments and the processes that were deployed in the study,” the statement continued.
He further questioned the credibility of the study, citing a lack of consultation with key stakeholders, including the Hustler Fund secretariat and the ministry itself.
“As the ministry in charge of the implementation of the Fund, we were never approached, and we have since confirmed from the management of the Fund that they too were not approached to respond or give clarity to all the claims and nuances that have come out of the study. If the NGO was genuine in its pursuits, they would at least have adhered to the professional ethical standards that govern such studies,” the ministry added.
Oparanya Accuses KHRC of Politicizing Report Findings
CS Oparanya accused the KHRC of politicizing its report on the Hustler Fund, claiming that it had been strategically released to instill public discontent.
He pointed out that the report was initially to be published on June 24, 2025, a date which he claimed was particularly chosen to fall within the first anniversary of the demonstrations against the Finance Bill 2024. He suggested that the timing was not inadvertent, but an intentional act designed to incite public outrage.
“We also take note of the initial launch for the said report, which had been scheduled for June 24th, 2025, to coincide with the First anniversary of the Finance Bill 2024 protests. Now, looking at some of the conclusions and premature recommendations, it is sufficient to say that the purpose of this malicious and contemptuous unprofessional study was to provide a tool for public incitement against the transformative reform agenda that President Ruto is presiding over,” the statement read.
Oparanya reiterated that the ministry stands by the Fund’s objectives and remains committed to supporting low-income earners through accessible, affordable credit despite politically charged criticism.
The Ministry also discredited reports that the Fund has been funded Ksh50 billion by the government, clarifying that only Ksh14 billion has been injected since inception. Despite this modest injection, the Fund has swollen to a Ksh72 billion loan portfolio. According to the ministry, this is testament to the Fund’s own financial sustainability and reduced reliance on taxpayer support.
Gov’t Defends Hustler Fund’s Reach and Repayment Rates
The government also rejected claims that the Hustler Fund is inaccessible. In its defense, the ministry highlighted that the platform operates via *254#, a USSD code accessible to both feature phone and smartphone users. So far, it has served over 26 million Kenyans – proof, it says, of its wide reach and public uptake.
Moreover, the ministry faulted the report for failing to consider the realities of Kenya’s digital lending ecosystem. It noted that the average loan size in the sector is around Ksh250 – a context that is essential when assessing the Fund’s lending model and effectiveness.
Contrary to the report’s claim that loans are capped between Ksh500 and Ksh1,000, Oparanya clarified that the Hustler Fund’s personal loan product offers limits of up to Ksh50,000. In fact, he noted, some borrowers are now accessing as much as Ksh150,000 through the Bridge loan facility.
He also dismissed concerns about the 14-day repayment period, arguing that the researchers failed to consider the prevailing terms in Kenya’s digital lending space. “The Fund is designed to complement existing loan products,” he stated. “Criticism without understanding the market it serves reflects poor research standards.”
RELATED – Human Rights Body Demands Shutdown of Hustler Fund
Oparanya emphasized that the personal loan is just one of several offerings. The Bridge loan product, for instance, comes with a 30-day repayment period, an annual interest rate of 8%, and a one-time rollover option that extends repayment up to 60 days.
According to Oparanya, over 9 million Kenyans now borrow regularly from the Hustler Fund, with more than 5 million showing consistent repayment discipline, earning them incremental upgrades in their loan limits.
He revealed that the Fund currently disburses an average of Ksh68 million daily in personal loans and Ksh27 million via the Bridge loan product. In total, Ksh72 billion has been disbursed so far, with more than Ksh60 billion already repaid.
New Credit Scoring Model Boosts Access Without Collateral
The CS also announced that the ministry has developed a behavioral credit rating system that will be integrated into the wider financial sector. This innovation, he said, aims to ease access to credit by reducing dependence on traditional collateral-based models.
“The Fund experience has created credit visibility of the 26 million customers, which has now been crystallised in a Hustler Fund behavioural credit rating system ranging from A1, A2, A3, B1, B2, B3, C1, C2, C3, with A-scores being excellent while C-scores being very poor.
“We are currently institutionalising the credit score to take it to the market and encourage the market to adopt credit rating as opposed to the conventional collateral, which most,” the statement read.
Oparanya wrapped up his statement with a stern warning against what he called a deliberate attempt to weaponise flawed research to discredit a critical national programme relied on by millions of Kenyans. He condemned the KHRC report as not only factually incorrect but also dangerously misleading.
“It is therefore prematurely erroneous for the NGO to publish a skewed report devoid of facts and whose motive is to incite the public against the administration,” he stated.
Oparanya questioned the legitimacy of the Commission’s stance, asking how an organisation claiming to defend human rights could advocate for the scrapping of a programme that has empowered millions.
“We wonder which human rights they are defending if they demand the scrapping of the Fund based on its nascent experience. Who defends the over 9 million beneficiaries who borrow from the Fund regularly?” he posed.
The post ‘Who Defends the 9M Hustlers?’ Govt Rebukes KHRC’s Call to Scrap Hustler Fund appeared first on Bossnana.
