Hustler Fund CEO grilled over possible loss of Ksh.6 billion

Members of the National Assembly Special Funds Accounts Committee have raised concerns over a possible loss of over Ksh.6 billion Hustler Fund money, which they say has not been repaid by borrowers.

Speaking during a session with Hustler Fund Chief Executive Officer Henry Tanui, the MPs have called for a probe into the funds.

The concerns intensified after the Special Funds Accounts Committee, chaired by Fatuma Zainab, suspended a scheduled session with the Financial Inclusion Fund (Hustler Fund) when it emerged that the Fund’s management had failed to respond to 21 audit queries for the 2022/2023 financial year, queries that have remained unanswered for more than a year.

The Committee expressed alarm that despite being granted ample time, the Fund had not furnished critical documents required for auditors’ review, hindering the Committee’s scrutiny of how public money was utilized.

“What we have witnessed today is a mockery of this Committee,” the Chairperson said, directing CEO Tanui to return with all outstanding documents within seven days: “We will not accept excuses. Kenyans deserve clarity.”

Members questioned why essential records comprising the full list of beneficiaries and the status of funds not yet in circulation, had not been presented.

Legislators argued that the failure to provide such information raises doubts about the Fund's management. 

Responding to the allegations, CEO Tanui confirmed that the Fund had received Ksh.14 billion from the Exchequer, with only Ksh.1.4 billion currently in circulation. He, however, maintained that no money had been lost. 

In their argument, MPs countered that unrecovered loans effectively amount to lost money from the perspective of taxpayers.

Given the number of unresolved issues including uncertainty over whether the remaining funds are still intact in the Fund’s accounts and the prolonged withholding of supporting documents, the Committee members signaled the possibility of recommending a special audit.

“This is the last chance,” Fatuma warned. “We must account to the people. We need proper details of who got what money and what has happened since.”