When the Hustler Fund was launched in 2022, it was presented as a government-backed loan facility designed to increase financial access for low-income Kenyans. It offered fast loans through mobile phones, low interest rates, and minimal barriers to entry. By 2025, however, the fund has expanded its function, now including a credit scoring system tracking the financial behavior of over 26 million citizens.
Principal Secretary Susan Mang’eni recently confirmed that every borrower now has a credit profile. “We have established a hustler fund credit rating system, so all beneficiaries of hustler fund have been rated. Just dial *254# then select Hustler fund, the first thing it will show you is your credit rating.” she said.
The confirmation introduces new context to a program initially framed as a quick-access loan solution. The scoring system appears to have developed within the fund’s infrastructure over time, though it was not highlighted in early government messaging.
From Microloans to Digital Profiling
The Hustler Fund was intended to support micro and small businesses, many of which had never accessed formal credit. Borrowers registered via USSD codes or mobile apps, submitting national ID numbers and mobile phone information.
Over time, the platform began logging repayment behavior, loan amounts, borrowing frequency, and possibly transaction data from mobile money platforms like M-Pesa. Today, it generates credit ratings for users based on this data. While the system contributes to building credit histories, this functionality was not part of the fund’s original public messaging.
Consent and Awareness
Kenya’s Data Protection Act, 2019, requires informed consent for collecting and using personal data. Borrowers likely accepted general terms and conditions when signing up, but there’s little indication they were explicitly informed that their financial behavior would be analyzed to generate credit scores.
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A recent poll by Amnesty International revealed that 67% of Kenyans were unaware of the DPA, and only 18% were aware of the Office of the Data Protection Commissioner (ODPC). This suggests limited borrower understanding of how their data is being used.
Once a loan is taken, a borrower’s data is added to a system that could influence future lending decisions by both public and private financial institutions.
Access to Credit Profiles and Data
The Hustler Fund’s scoring system is managed via a digital platform likely overseen by the National Treasury or another designated body. While no formal policy has been disclosed, it is possible that the system interfaces with credit reference bureaus or allows for future integration.
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Financial institutions may use this data to assess borrower reliability. Government agencies may also access it for audits or analysis. The Data Protection Act limits such access to specific, consented purposes, but it remains unclear whether these standards are being consistently applied.
Scope of Data Collection
The Hustler Fund gathers:
- Loan repayment records (timeliness, defaults)
- Identification details (national ID numbers, phone numbers)
- Borrowing behavior (loan size, frequency)
- Potential mobile money activity (such as from M-Pesa)
The result is a digital infrastructure resembling a national borrower registry. This transformation has taken place within a program that started as a microloan facility.
Oversight and Accountability
The Office of the Data Protection Commissioner (ODPC) has raised concerns about the Hustler Fund’s data practices. In particular, the ODPC noted the lack of a formally designated data controller and flagged potential privacy issues linked to third-party involvement.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.