Former Attorney General Justin Muturi has called for an immediate independent forensic audit of the Hustler Fund after the Auditor-General raised serious concerns about how the scheme has been managed.

Muturi made the remarks on Saturday, April 25, 2026, while addressing traders at Kongowea Market in Mombasa. He reminded the crowd that he stood at the same market in 2022 with Kenya Kwanza leaders and promised that the fund would help small businesses grow.

He said many Kenyans believed in that promise, but recent findings now paint a worrying picture.

“When we came here to Kongowea Market in 2022, standing with Kenya Kwanza, we spoke with conviction and hope,” Muturi said.

“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.”

He added: “We believed in that promise. But today, the reality unfolding is deeply troubling and unacceptable.”

Auditor General concerns

The Auditor-General’s latest report covers the financial year ending June 2025. It states that officials closed 386,735 loan accounts even though the borrowers still owed money.

The total unpaid amount linked to those accounts stands at Ksh377.5 million.

Auditors said they did not receive records to explain why the accounts were closed. The report also said the action went against the Public Finance Management (Financial Inclusion Fund) Regulations, 2022.

Muturi said the findings raise major questions about who received the loans and how they were approved.

“This is not a small administrative error, it is a serious breach of public trust,” he said.

“It raises one unavoidable question: who exactly borrowed these funds, and under what verified identities?”

He warned that fake identities, duplicate registrations and ghost borrowers may have entered the system, taking money away from genuine traders and small business owners.

“There is growing concern that the system may have been infiltrated by fake identities, duplicated registrations, and ghost borrowers,” Muturi said.

“This is not what we promised you. This is not what you deserved.”

Audit flags control lapses

The report also highlighted other weaknesses in the scheme.

Auditors found that officials gave extra loans to 11,550 borrowers before they cleared their first loans.

They also said more than 4.27 million customers had no borrowing limits, exposing the fund to possible abuse.

In addition, 104,631 loans worth Ksh116 million were issued to borrowers whose national identity card numbers were missing from the database.

Muturi said the lack of borrowing limits showed poor controls within the fund.

“Even more concerning is the revelation that the fund lacks clear borrowing limits for millions of users, opening a dangerous loophole for abuse,” he said.

“This is no longer just mismanagement, it points to a potential systematic exploitation of a programme meant to empower the very people it is now failing.”

Most Hustler Fund loans are processed through mobile phone platforms . Muturi said companies involved in the system should explain how identity checks were carried out.

“Silence or half-truths cannot be tolerated when public funds are at stake.”

The Hustler Fund was launched in November 2022 to offer affordable loans to Kenyans who could not easily access bank credit.

Government figures show the fund has disbursed about Ksh83 billion to more than 26 million Kenyans.

Borrowers have repaid Ksh71 billion, leaving Ksh12.5 billion unpaid. The government has also asked Parliament for Ksh300 million to pursue defaulters.

Muturi said the latest concerns should not be ignored.

“We must not normalise this. We must not look away,” he said.

He called for a full review of the digital system, including registration processes, identity checks and any networks that may have taken advantage of gaps in the system.

“We demand full accountability. We demand transparency. And we demand immediate action to protect the resources of the Kenyan people.”