The Ministry of Cooperatives has dismissed allegations that the Financial Inclusion Fund, widely known as the Hustler Fund, was allocated to unborn children and minors.
Speaking before the National Assembly Departmental Committee on Trade on Thursday, March 6, Cooperatives Principal Secretary Susan Mang’eni attributed the discrepancies to data extraction errors rather than an actual misallocation of funds.
Mang’eni clarified that the ministry had since rectified the records, ensuring that all individuals sampled possessed verified identification and registered phone numbers.
“The data used in the audit report contained significant extraction errors because the audit was not conducted in a live environment. We have since cleaned up the records, and all individuals sampled have verified identity cards and telephone numbers,” she explained.
Reassuring the committee, Mang’eni emphasized that the Hustler Fund’s system has built-in restrictions preventing minors from accessing loans.
She reiterated the government’s commitment to upholding transparency and accountability in managing the fund.
Mang’eni also highlighted the fund’s primary objective, stating that as a flagship initiative, its main purpose is to support small businesses and individual entrepreneurs.
“The Hustler Fund remains a critical tool in driving financial inclusion and economic empowerment, with proper safeguards in place to ensure funds reach the intended beneficiaries,” she noted.
Mang’eni’s remarks come in response to a recent report by Auditor General Nancy Gathungu, which revealed that Ksh31.8 million had been disbursed to 44,167 underage recipients and unborn individuals with future birth dates.
According to the audit, 1,186 children between 10 days and 17 years old received a total of Ksh681,395 from the Hustler Fund, while 42,981 individuals recorded with future birth dates were allocated Ksh31,135,690.
