New data from Kenya’s State Department for Micro, Small, and Medium Enterprises (MSMEs) has shown that default rates for loans from Kenya’s “Hustler Fund,” a government initiative which allows citizens to access credit at cheaper rates than commercial banks, now surpass 50%. President William Ruto launched the fund in a bid to offer poorer Kenyans instant loans at affordable rates. The interest rate of Hustler Fund loans is 8% annually, some industry figures raised questions about the sustainability of the project at the time, given that central bank interest rates are 12.75%.
