Hustler Fund is a crime scene as Audit uncovers Ksh. 31 million Hustler Fund loans to underage and "unborn" customers - LOOK!

Thursday, February 27, 2025 - A recent audit of the Hustler Fund, the Government-backed financial inclusion initiative, has exposed major financial irregularities, raising serious concerns about data integrity and fund management.

According to the National Government Funds audit report for the 2023/2024 fiscal year, loans totaling over Ksh. 31 million were disbursed to individuals registered as underage or, shockingly, unborn.

The report revealed that 253,717 customers had birthdates listed between July 1, 2024, and December 31, 2073 - indicating they do not yet exist.

Among them, 42,981 "unborn" individuals had already received loans amounting to Ksh. 31,135,690 through mobile service providers Safaricom, Airtel, and Telkom.

Under Kenyan law, contracts with minors are generally voidable, potentially rendering these loans unenforceable and exposing the Hustler Fund to huge financial losses.

The audit further raised serious concerns about the fund’s operational structure.

It criticized the heavy reliance on mobile service providers for loan disbursement, repayment, and records management.

"The Fund does not have control over loans management, disbursements, repayments, withdrawal of savings, or maintenance of records," the report warned, highlighting risks of operational, financial, and data integrity issues.

Launched in November 2022, the Hustler Fund provides loans between Ksh. 500 and Ksh. 50,000 to individuals via *USSD code 254# or mobile applications.

The loans attract an 8% annual interest rate, calculated daily, with repayment required within 14 days.

The Kenyan DAILY POST