Why Hustler Fund Is Launching Tukuze Hub for Borrowers
One of those responsible Hustler Fund borrowers is set to benefit from a new business support programme launched by the government as it seeks to improve loan repayment, strengthen micro-enterprises and promote financial discipline among beneficiaries.
The initiative, dubbed Tukuze Hub, targets borrowers with good repayment records and will provide training, financial literacy and business development support aimed at helping entrepreneurs increase their incomes and build sustainable enterprises.
The programme comes amid growing concern over loan defaults under the Hustler Fund, with borrowers having failed to repay an estimated Sh12.5 billion. The amount represents an active default or non-repayment rate of between 15 and 20 per cent of the Sh90 billion that has so far been disbursed to about 28 million borrowers.
The Hustler Fund, in partnership with Strathmore University and the African Management Institute (AMI), announced the initiative last week as part of efforts to move beyond lending and provide borrowers with the skills and support needed to grow their businesses.
Speaking during a town hall baraza at Coast Car Park in Mombasa County, Hustler Fund representative Geoffrey Ochande said Tukuze Hub would give selected borrowers an opportunity to identify new business opportunities, increase their earnings and strengthen their enterprises.
Tukuze Hub targets responsible borrowers
“Selected borrowers, identified based on their good repayment record, received an SMS inviting them to a short interview with a member of the Hustler Fund team. The interview confirms eligibility and provides more information about Tukuze Hub and the support available,” Ochande said.
The programme is being implemented with the support of Strathmore University and AMI, institutions with experience in business training, enterprise development and capacity building for Micro, Small and Medium Enterprises (MSMEs).
Ochande said the Mombasa baraza was designed to offer more than a conventional government meeting by creating an interactive platform where entrepreneurs could engage with officials, financial institutions and business support organisations.
He said the forum was intended to celebrate borrowers who had demonstrated responsible repayment habits while strengthening financial literacy and encouraging a culture of borrowing for productive purposes.
“The baraza seeks to leave entrepreneurs inspired to adopt sound business practices and take advantage of the many opportunities available to expand their businesses,” he said.
Ochande said Tukuze Hub would serve as a key incentive for borrowers who have demonstrated responsible financial behaviour.
“Central to this vision is the introduction of Tukuze Hub, which will be positioned as a key reward for responsible Hustler Fund borrowers,” he stated.
According to Ochande, the new hub is expected to demonstrate the link between responsible borrowing and access to wider business development opportunities.
He said borrowers who manage their loans responsibly could benefit from support designed to help them build stronger enterprises, create employment opportunities and contribute to economic growth.
“The Hub demonstrates how responsible borrowing can unlock access to business development support, helping entrepreneurs build stronger enterprises, create jobs, and contribute to Kenya’s economic growth,” he stated.
Government seeks stronger businesses and repayment
The Mombasa forum brought together Hustler Fund leadership, National and County Government representatives, financial institutions, business support partners and entrepreneurs.
Ochande said the interactions would enable beneficiaries to gain practical knowledge on running and expanding their enterprises while also providing the government with feedback on challenges facing borrowers.
He described the baraza as an opportunity to engage directly with beneficiaries, celebrate their achievements and collect views that could be used to strengthen financial inclusion programmes.
He reaffirmed that the Hustler Fund was established to expand access to affordable financial services for Kenyans who have traditionally faced difficulties accessing formal credit.
According to Ochande, the performance of the fund should not be judged solely by the amount of money disbursed but also by its impact on individuals and businesses.
He emphasised the importance of documenting beneficiary success stories as a way of measuring the fund’s impact and identifying areas where its programmes can be improved.
The government is also seeking to shift the focus of the Hustler Fund from simply providing affordable credit to encouraging broader financial capability among borrowers.
Ochande urged beneficiaries to borrow with a clear purpose, invest wisely, save consistently and repay their loans on time.
He also called on stakeholders to work together to ensure entrepreneurs in Mombasa and other parts of the country derive greater value from the opportunities created through the Hustler Fund.
AMI Programme Manager Mercy Murigi and Strathmore University Associate Director for Grants Cavin Otieno said their institutions were committed to helping MSMEs overcome some of the challenges that limit their growth.
They said targeted capacity building, financial literacy and business development support were critical in helping entrepreneurs manage their finances and make informed decisions.
The two officials noted that equipping business owners with practical skills and knowledge of financial management could improve the resilience of enterprises and position them for sustainable growth.
The launch of Tukuze Hub therefore marks a shift in the Hustler Fund’s approach, with the government seeking to reward responsible borrowers while using business training to improve the performance of enterprises.
