Former Public Service Cabinet Secretary Justin Muturi has called for an immediate and independent forensic audit of the Hustler Fund system, citing concerns over alleged irregularities, identity breaches, and possible misuse of public funds.
Speaking on the programme’s original objectives, Muturi recalled the promises made during the launch of the initiative in 2022, saying it was designed to empower small traders and restore dignity to grassroots enterprise.
“When we came here to Kongowea Market in 2022, standing with Kenya Kwanza, we spoke with conviction and hope. We told you the hardworking traders and ordinary wananchi that the Hustler Fund would uplift your businesses, expand your opportunities, and restore dignity to enterprise at the grassroots. We believed in that promise,” he said.
However, Muturi said emerging audit findings now raise serious questions about the integrity of the programme and its management.
“But today, the reality unfolding is deeply troubling and unacceptable,” he added.
His remarks follow revelations from the Auditor-General indicating that nearly 400,000 loan accounts were irregularly closed despite carrying outstanding balances amounting to Sh 377.5 million. Muturi described the findings as a major breach of public trust.
“This is not a small administrative error, it is a serious breach of public trust and a violation of the very regulations meant to safeguard these funds,” he said.
He questioned the authenticity of borrowers linked to the accounts, raising concerns about possible infiltration of the system by fraudulent identities.
“It raises one unavoidable question: who exactly borrowed these funds, and under what verified identities?” he posed.
Muturi further warned that there may have been widespread system abuse, including fake identities, duplicate registrations, and ghost borrowers allegedly diverting funds meant for genuine small-scale traders.
“There is growing concern that the system may have been infiltrated by fake identities, duplicated registrations, and ghost borrowers, effectively diverting public resources away from genuine small-scale traders like those here in Kongowea,” he said.
He stressed that such outcomes were contrary to the original vision of the Hustler Fund initiative.
“This is not what we promised you. This is not what you deserved,” Muturi said.
The former CS is now demanding a full forensic audit of the system to determine whether the irregularities stemmed from negligence or deliberate manipulation.
“We now demand an immediate and independent forensic audit of the Hustler Fund system to expose all irregularities, identity breaches, and any fraud networks that may have exploited it,” he said.
He also called for a thorough review of the digital infrastructure and verification mechanisms used in the programme.
“The digital infrastructure and verification mechanisms must be thoroughly examined to establish whether this was negligence or a deliberate, large-scale manipulation,” Muturi added.
Muturi further urged all implementing partners, including telecommunications firm Safaricom, to account for their role in identity verification and account creation.
“All partners involved, especially Safaricom, must come forward and publicly account for the identity verification processes used, how these accounts were created and validated, and provide a full breakdown of the closed accounts and the identities linked to them,” he said.
He warned that lack of transparency would be unacceptable given that public funds were involved.
“Silence or half-truths cannot be tolerated when public funds are at stake,” he said.
Muturi also raised concerns about structural weaknesses in the lending system, particularly the absence of clear borrowing limits for millions of users, which he said could expose the fund to abuse.
“Even more concerning is the revelation that the fund lacks clear borrowing limits for millions of users, opening a dangerous loophole for abuse,” he noted.
He concluded by urging urgent action and accountability to safeguard public resources.
“We must not normalize this. We must not look away. We demand full accountability. We demand transparency. And we demand immediate action to protect the resources of the Kenyan people,” Muturi said.