MPs demand names of defaulters as Hustler Fund unpaid loans hit Sh12.5b
Business
By
Josphat Thiong'o
| Mar 06, 2026
Those who took Hustler Fund loans are yet to pay Sh12.5 billion.
Inclusion Fund Chief Executive Officer Henry Tanui on Thursday revealed that Sh83 billion had been issued out as of Wednesday this week, and Sh71 billion had already been repaid.
Members of the National Assembly’s Special Funds Committee asked the Fund to share a list of those who had benefited and those who were yet yet to pay back.
Committee Chairperson Fatuma Mohammed directed the Fund to provide details of all the beneficiaries within 14 days.
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Tanui maintained that no money had been lost, saying the borrowers had different repayment periods, and that recovery measures such as sensitisation and personalised phone calls had been put in place.
He said about Sh50 million is borrowed every day, translating to Sh1.5 billion every month.
“A total Sh5.3 billion has been saved under the fund but Sh1 billion is revolving. We are currently holding Sh4.2 billion in savings. Majority of young people between the age of 18 and 30 have saved Sh2 billion,” he told the committee.
In response to a request for a list of borrowers and debtors, the CEO explained that the money yet to be repaid was only 15 per cent of the total loaned out, noting that there had been a significant improvement in repayment.
“Kenyans from all counties have borrowed loans under Hustler Fund… When we initially launched the Fund, there were some Kenyans who had decided not to pay but as we approach them, they are seeing the benefits of the fund and are paying,” he said.
This, however, prompted more questions as MPs sought to know the number of defaulters and how much was owed.
The committee consequently sought to know the measures that the Fund had put in place to recover the money.
Concerned that there had been cases of people registering for the loans with more than one SIM card, the committee questioned how the agency was collaborating with mobile phones service providers to ensure that it did not lead to loss of funds.
Tanui said the agency was engaged in different approaches, including reminder notices, personalised phone calls and face-to-face meetings with chronic defaulters to negotiate repayment plans.
“We are engaging with our partner agents (Safaricom, Airtel, Telkom, and banks) to leverage their customer touch points and communication channels to remind and incentivize borrowers to clear their arrears,” stated Tanui.
He also noted that for borrowers facing genuine difficulty, the Fund would develop structured, time-bound repayment agreements without resorting immediately to legal action.
The committee also heard that a strategy is being formulated to offer limited-time incentives for full settlement of outstanding balances.
“For borrowers who remain unresponsive, the Fund will commence a phased enforcement process, which includes forwarding the accounts to a dedicated collection agency and, as a final recourse, initiating legal proceedings for recovery. Management is confident that this assertive and structured approach will significantly improve the recovery rate of the outstanding principal and interest,” added the CEO.
“I think the best way that we as politicians can help the fund operate is to keep away from the Hustler Fund. Because when we go to the rallies and tell the people not to pay and come back here and hold the CEO and his team to task, it is a bit unfair.”