MSME PS Susan Mang’eni Refutes Gachagua’s Hustler Fund Claims, Cites Strong Uptake and Repayment in Nyeri

Principal Secretary for the State Department for Micro, Small and Medium Enterprises (MSMEs) Development, Susan Auma Mang’eni, has strongly disputed former Deputy President Rigathi Gachagua’s criticism of the Hustler Fund, using figures from Nyeri County to challenge claims that the programme has failed to benefit ordinary Kenyans.

Mang’eni said 420,000 Kenyans in Nyeri County have accessed the Financial Inclusion Fund, popularly known as the Hustler Fund, borrowing a cumulative KSh1.88 billion.

According to the PS, the number of beneficiaries represents more than half of Nyeri County’s population, demonstrating what she described as significant uptake of the government-backed credit programme.

She further cited individual borrowing figures, saying the top borrower in Nyeri County has cumulatively accessed KSh2.06 million through the fund.

In Mathira Constituency, which Gachagua represented in Parliament before becoming Deputy President, Mang’eni said the top borrower has accessed KSh648,000, while in Ruguru Ward, the top borrower has accessed KSh584,000.

Mang’eni also pointed to repayment performance as an indicator of the programme’s uptake and sustainability. She said Nyeri has recorded the highest Hustler Fund repayment rate nationally at 88 per cent, followed closely by Murang’a, Kiambu and Nairobi, each at 87 per cent.

Her response followed Gachagua’s criticism of the programme during his assessment of the Kenya Kwanza administration’s four years in office. The former Deputy President questioned the impact of the fund, saying he was yet to hear from a Kenyan who had expanded a business as a result of accessing Hustler Fund financing.

Gachagua also questioned government figures showing that the fund had reportedly disbursed about KSh87 billion to 28 million people, arguing that the figures did not demonstrate meaningful economic transformation. He further criticised the small amounts received by some borrowers, saying loans of as little as KSh500 could not establish or expand sustainable businesses.

He subsequently described the programme as a “lost cause”, arguing that high defaults and low individual loan amounts undermined its intended purpose.

Mang’eni, however, used Nyeri’s figures to present a contrasting picture, arguing that the number of beneficiaries, total amount borrowed and repayment levels demonstrate that Kenyans are actively using the facility.

The PS appeared to directly challenge Gachagua’s claim of speaking for ordinary Kenyans, asking: “Huyu anaskiza ground gani?” — loosely translated as, “Which ground is he listening to?”

The Hustler Fund was introduced by the Kenya Kwanza administration as a financial inclusion programme intended to provide affordable credit to individuals, groups and small businesses that often face difficulties accessing conventional financing.

The State Department has continued to defend the programme as an important tool for expanding access to credit. It has also highlighted its role in helping borrowers rebuild their credit standing, with government figures indicating that millions of Kenyans previously negatively listed with Credit Reference Bureaus have benefited from the programme.

 Mang’eni said the Hustler Fund uptake and repayment figures are  evidence of impact, while Gachagua continues to question whether the programme has translated into sustainable business growth for ordinary Kenyans.