Why Ruto’s Hustler Fund faces World Bank test as review probes how Kenyans borrow and save

President William Ruto's Hustler Fund is currently under review by the World Bank through the International Finance Corporation (IFC). The assessment, which encompasses both quantitative data and beneficiary experiences, aims to determine how Kenyans have utilized the government-backed credit programme and if the lending and savings components are influencing their financial behaviour. The review is anticipated to be completed by the end of 2026.

Cooperatives Principal Secretary Susan Mang'eni revealed that the assessment has already commenced and a report is expected by the end of 2026. She stated that the World Bank, with assistance from IFC, has been conducting a quantitative assessment of the fund and an impact evaluation. The review aims to offer a more comprehensive understanding of the programme than merely the number of loans disbursed or individuals reached.

The assessment will scrutinize how beneficiaries have employed the credit and savings facilities, providing a broader perspective than the mere count of loans and people reached. This distinction is crucial as the fund was established not just to provide access to credit but also to promote saving and integrate underserved Kenyans into the formal financial system. The evaluation will encompass both quantitative and qualitative aspects of the programme, including borrower behaviour.

Mang'eni mentioned that the government has established a behavioural credit-rating system utilizing data generated through the programme. Borrowers are classified into ratings ranging from A1 to C3 based on their borrowing and repayment patterns. A1 represents the highest category, reflecting borrowers' performance. This system provides the government with insights into how individuals borrow and repay via the fund.

The government has argued that the Hustler Fund assists low-income Kenyans in becoming more visible within the formal credit system. Mang'eni noted that prior to the programme's introduction, many Kenyans had negative listings with Credit Reference Bureaus (CRBs). However, she mentioned that the situation has since improved, with more individuals now receiving positive listings. The assessment will be crucial in determining the extent to which these changes can be attributed to the Hustler Fund.

Additionally, the review will examine the fund's savings component. According to the government, users have amassed over Ksh7 billion in short- and long-term savings over nearly three years. This figure serves as another measure for the World Bank to evaluate how beneficiaries interact with the programme beyond borrowing. The emphasis on both borrowing and saving is significant because the Hustler Fund was designed to offer more than just a lending platform. Its model integrates credit access, savings, and the collection of financial data on users.

This latest assessment comes three years after the World Bank expressed support for the Hustler Fund and other government-backed lending initiatives in 2023. World Bank officials held consultations with Ruto to explore ways the institution could assist the programme and empower vulnerable Kenyans. Victoria Kwakwa, then World Bank Regional Vice President for Eastern Africa, highlighted the bank's support for programmes aimed at empowering the poor and vulnerable.

The World Bank's support has enabled the government to expand the programme and utilize its data to track borrower behaviour.

For the government, the findings from the World Bank's assessment could provide evidence on whether the fund's extensive reach has translated into tangible changes in how beneficiaries borrow, repay, and save. For the beneficiaries themselves, the evaluation could clarify the significance of the data collected through the Hustler Fund regarding their participation in the broader formal financial system.

The report is projected to be released by the end of 2026, offering a more detailed assessment of the Hustler Fund's impact than headline figures on the number of Kenyans who have accessed it.