MPs Demand Accountability as Hustler Fund Defaults Surge to Sh12.5 Billion

The National Assembly’s Special Funds Accounts Committee has launched a high-stakes inquiry into the Financial Inclusion Fund, commonly known as the Hustler Fund, following revelations that unpaid loans have reached a staggering Sh12.5 billion. During a session on March 3, 2026, lawmakers expressed deep concern over the sustainability of the Sh83 billion flagship project, demanding that the fund’s management provide a comprehensive list of all defaulters organized by constituency.

Financial Inclusion Fund CEO Henry Tanui informed the committee that while the fund has successfully reached millions of Kenyans, the growing mountain of non-performing loans poses a significant risk to its revolving nature. The committee, chaired by Fatuma Zainab, questioned the efficacy of current recovery mechanisms and directed the secretariat to furnish Parliament with the names, ID numbers, and contact details of those who have failed to settle their debts. This move is intended to allow for a localized audit of the beneficiaries and to determine if the “hustlers” targeted by the program are indeed the ones benefiting or if the system has been compromised by systemic failures.

In addition to the debt crisis, the fund is grappling with severe administrative challenges, including a reported staff shortage of over 80%. Management revealed that out of an established requirement of 122 staff members, only 22 are currently in place, leaving the multi-billion shilling fund vulnerable to oversight gaps. As the government explores controversial recovery options—such as potential deductions from mobile money wallets and airtime—Parliament is insisting on a full forensic breakdown of the Sh12.5 billion loss before any further radical measures are approved.