Auditor General Nancy Gathungu has raised serious concerns over the Hustler Fund, revealing that Sh8 billion of approved funds cannot be traced, as no request or explanation for its allocation was provided.
The damning revelation, detailed in the 2023/2024 financial year audit report, has sparked outrage among lawmakers and the public, with questions mounting over the management of President William Ruto’s flagship financial inclusion programme aimed at supporting Kenya’s small-scale entrepreneurs.
According to Gathungu’s report, the State Department for Cooperatives, tasked with overseeing the Hustler Fund, spent Sh12 billion of the allocated Sh20.2 billion budget, leaving Sh8.2 billion unaccounted for.
“The State Department requested the transfer of Sh12 billion, which was processed, but no request was made for the remaining Sh8 billion, leading to under-absorption,” Principal Secretary Patrick Kilemi told the National Assembly’s Public Accounts Committee (PAC).
Kilemi attributed the discrepancy to transitional challenges during the Kenya Kwanza administration’s early days, as the State Department for Micro, Small, and Medium Enterprises (MSMEs) was not fully integrated into government financial systems.

However, Susan Mang’eni, PS for MSME Development, clarified that the Sh8 billion, intended as counterpart funding for long-term savings, was not drawn from the National Treasury, as the savings product was still under development by June 30, 2023.
“It would have been imprudent to draw down funds to idle in commercial banks,” Mang’eni stated, denying claims of misappropriation.
Despite this, Funyula MP Wilberforce Oundo questioned whether due process was followed, asking, “Where is this money? Was an executive order issued to transfer funds?”
The Hustler Fund, launched in November 2022, provides loans from Sh500 to Sh50,000 to Kenyans at the economic pyramid’s base, targeting youth and women.
While Mang’eni reported that Sh71 billion has been disbursed to over 26 million beneficiaries, with Sh4.8 billion in savings mobilized, the audit exposed further irregularities, including Sh31.8 million disbursed to underage and unborn borrowers and Sh1.6 billion in duplicate loans.
The controversy underscores ongoing concerns about the Hustler Fund’s management, with critics demanding stricter oversight to safeguard public funds.