David Ndii: Hustler Fund Is Run By Private Sector, Gov't Has No Access To It

David Ndii, the Chair of President William Ruto’s Council of Economic Advisors, has disclosed that the Hustlers Fund, also known as the financial inclusion fund, is exclusively managed by private sector players. Ndii, an economist, further stated that the fund's disbursement system is entirely automated, with no public official having access to it. The partner telcos with the government to dispense the funds are mandated to access the engines, and the money is held in a bank under a "custodian." Ndii made these comments during Citizen TV's Tuesday night show.

The telecos involved in the Hustler Fund disbursements include Safaricom, Airtel, Telcom, and other technology providers.

Ndii's comments come at a time when various political factions are questioning the fund's source of funding. The Cooperatives and SMEs CS Chelugui is anticipated to present a supplementary budget to parliament since the Ksh.50 billion allocated to the kitty was not in the 2022/2023 budget.

Despite President William Ruto's announcement that no committees would be formed to manage the fund's disbursements, there is an advisory board driving the flagship project as part of the government's efforts to strengthen the program. The four-member board will serve for three years.

This raises questions about why the government would enter into public-private partnerships with various players in the technology industry when they lack access to a commitment that is critical to the Kenya Kwanza administration.

The Hustler Fund was launched in November with the aim of assisting entrepreneurial individuals in unlocking their doors to investments. The USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya make the fund accessible, and there are no processing fees according to CS Chelugui.


Under personal finance, borrowers can presently access between Ksh.500 and Ksh.50,000, and their eligibility grows by borrowing more and repaying within the permitted 14-day period. The applicable interest rate is 8% per year, calculated per day.

However, not all of the money will be disbursed to the borrower. Five percent of the loan will be deposited into a savings account. In the case of a Ksh.1,000 loan, Ksh.50 will be deposited, with Ksh.35 going to a pension account and 70% going to the short-term savings account of the borrower.

To be eligible for a loan, a borrower must be at least 18 years old, have a Kenyan identity card, and be subscribers of either M-PESA, Airtel money or T-Kash, with a sim card older than 90 days.

In conclusion, it is worth noting that the Hustler Fund is exclusively managed by private sector players, with no public official having access to the fund. The telcos involved in the disbursements are mandated to access the engines, with the money being held by a custodian in a bank.