Questions Over the Viability of President William Ruto’s Flagship Economic Programme

New data from Kenya’s State Department for Micro, Small, and Medium Enterprises (MSMEs) has shown that default rates for loans from Kenya’s “Hustler Fund,” a government initiative which allows citizens to access credit at cheaper rates than commercial banks, now surpass 50%. President William Ruto launched the fund in a bid to offer poorer Kenyans instant loans at affordable rates. The interest rate of Hustler Fund loans is 8% annually, some industry figures raised questions about the sustainability of the project at the time, given that central bank interest rates are 12.75%.

AFRICAN BUSINESS