Hustler Fund borrowers who consistently pay back their loans on time could soon qualify for much larger credit limits from mainstream commercial banks. The government is actively working on new, data-driven financial products designed to reward solid repayment habits, giving small business owners access to the kind of capital that the Hustler Fund itself cannot support.
This major policy shift comes after a high-level consultative meeting on Thursday, July 16, 2026. Chaired by Susan Mang’eni, the Principal Secretary for MSMEs Development, the meeting brought together the Hustler Fund, the Kenya Development Corporation (KDC), the Council of Economic Advisors (CEA), the Africa Guarantee Fund (AGF), commercial banks, and Credit Reference Bureaus (CRBs).
The task force gathered to map out the progress of these “enhanced limit” products, directly following a directive from President William Ruto during the Nyota Start-up Capital disbursement on July 10, 2026. President Ruto ordered all government catalytic funds to design new pathways that make credit more affordable and accessible for small and medium enterprises.
“I was honoured to chair a high-level consultative meeting, bringing together the State Department for MSMEs Development, the Financial Inclusion Fund (Hustler Fund), Kenya Development Corporation (KDC), the Council of Economic Advisors (CEA), Africa Guarantee Fund (AGF), Credit Reference Bureaus, and Commercial Banks to review progress on developing enhanced limit products for Hustler Fund customers,” Mang’eni stated.
“This aligns with the directive from our President, H.E. Dr William Ruto, during the Nyota Start-up Capital disbursement on 10th July 2026, for Government catalytic funds to develop products that improve MSMEs’ access to credit,” she added.
Historically, mainstream banks have locked out millions of Kenyan entrepreneurs simply because they do not own land, logbooks, or other physical collateral. The new lending model aims to change this entirely by allowing small business owners to “collateralize” their financial behavior instead. By using reliable credit-scoring models and a shared data pipeline between the Hustler Fund, banks, and CRBs, financial institutions can evaluate borrowers based on transaction records and consistent repayment histories rather than physical assets.
“Our discussions focused on accelerating product development, harmonizing credit-scoring models, strengthening collaboration between banks and Credit Reference Bureaus, and leveraging data-driven lending solutions to expand access to finance for MSMEs excluded from formal credit markets,” the PS said.
By creating a standardized system to evaluate nontraditional borrowers, the initiative hopes to open the doors of formal banking to those previously left behind. Ultimately, this collaborative reform aims to help MSMEs secure larger bank loans at single-digit interest rates, giving them the vital financial boost they need to scale up their operations.
“Through this collaborative approach, we aim to enable MSMEs to collateralize their credit history, thereby enabling MSMEs to access credit at single-digit interest rates without the need for conventional security,” Mang’eni noted.
