Exposed! Ruto’s Hustler Fund Turns into a Billions-Swallowing Black Hole
Fresh revelations have surfaced, exposing massive financial mismanagement within President William Ruto’s Hustler Fund. The initiative, which was launched with much celebration, was meant to provide credit access to many Kenyans. However, a recent report by Auditor General Dr. Nancy Gathungu has revealed significant financial irregularities.
According to her findings, the fund is struggling with non-performing loans totaling Ksh.8 billion, which have remained unpaid for over a year. About 64 percent of the loans issued have not been repaid, raising serious concerns about the fund’s sustainability.
In her 2023/24 audit report, Dr. Gathungu highlights major inconsistencies in the financial records of the Hustler Fund. She questions the reliability and accuracy of the fund’s financial statements. While an official financial report presented to auditors claimed a cash balance of Ksh.3.3 billion, a more detailed analysis discovered that Ksh.44.2 million was unaccounted for. This money was found in M-Pesa float balances held at Safaricom and other mobile service providers.
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The report further indicates that a significant number of borrowers have either disappeared or failed to make payments for over a year. As a result, Dr. Gathungu warns that recovering Ksh.8.7 billion may be difficult.
Another major issue uncovered is the existence of duplicate loans. The audit found that 880,013 loans, worth Ksh.1.6 billion, were duplicated. Additionally, 235,628 loans, valued at Ksh.210.4 million, were never repaid and were missing from the official loan records by the end of the financial year.
Shockingly, the report also shows that minors between the ages of 10 days and 17 years accessed loans through the fund, leading to a higher default rate. Nearly Ksh.700,000 was loaned to this underage group.
Further investigation found that three service providers failed to account for loan interest amounting to Ksh.20 million. The fund also failed to establish an internal audit system, which goes against the Public Finance Management Act, 2012, that requires proper internal financial oversight.
Additionally, Dr. Gathungu pointed out that the Hustler Fund did not invest in an adequate loan management system. She also raised concerns over the use of Ksh.401 million, which was allocated to match the long-term savings of clients who had borrowed more than five times.
The Auditor General’s findings cast doubt on the viability of President Ruto’s flagship projects, citing widespread financial mismanagement and violations of constitutional and financial regulations.
Exposed! Ruto’s Hustler Fund Turns into a Billions-Swallowing Black Hole
