Once hailed as a lifeline for the unbanked, the Hustler Fund is losing ground where it mattered most—on the farm. A searing new Central Bank of Kenya (CBK) survey reveals a dramatic exodus, with farmers swapping state-backed microcredit for the trust of relatives, the discipline of Saccos, and the falling rates of commercial banks.
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In a quiet but seismic shift across Kenya’s agricultural heartlands, the proportion of farmers tapping into the Hustler Fund has collapsed to just 4 percent as of January 2026, down from a peak of 20 percent in November 2024—and a far cry from the 10.3 percent recorded in July 2023, according to the latest CBK Farm Sector Credit Access Survey.
The fund, officially the Financial Inclusion Fund (FIF) and launched with much fanfare by the Kenya Kwanza administration in 2022, was designed to be a wrecking ball against financial exclusion. Loans ranging from Sh100 to Sh50,000 were meant to grease the wheels of the informal economy. But for farmers, the machinery has jammed.
The Great Farm Credit Migration
Overall borrowing among farmers to finance agricultural activities actually rose to 48 percent in January 2026, up from 37 percent in November 2025. Yet the Hustler Fund is being left behind like a dry season waterhole.
“Borrowing from friends and family was reported by 42 percent of sampled farmers in January 2026 compared to 25 percent in November 2025,” the CBK survey notes.
Digital loans climbed to 26 percent (from 23 percent), while bank loans surged to 33 percent (from 30 percent). The only notable decliner? Saccos, which fell from 30 percent to 18 percent—likely due to tighter member liquidity and competing demands.
Why the flight? The Hustler Fund’s terms are punishing for agriculture’s long, unpredictable cycles. Repayment is due within 14 days. Late payment hikes interest from 8 percent to 9.5 percent per annum, and accounts freeze after 30 days. For a maize farmer waiting on rains or a tomato grower navigating price volatility, that’s not credit—it’s a trap.
Default Drama and Political Fallout
The fund’s sustainability remains a specter at the feast. As of March 2026, total disbursements stood at Sh83 billion, with Sh71 billion repaid, leaving Sh12 billion in default. While the default rate has softened to 15 percent from a staggering 78 percent in 2024, the scars remain.
In September 2025, Cooperatives and MSMEs CS Wycliffe Oparanya warned that defaulters could be blacklisted from accessing bank and other institutional loans—a threat that may have ironically pushed farmers toward informal and family borrowing to avoid formal credit black marks.
What Farmers Are Buying With Borrowed Money
The survey, conducted from January 19–23, 2026, among 320 respondents (42 percent farmers, 43 percent retailers, 15 percent wholesalers), shows that agricultural loans are no longer just for seeds and fertilizer.
84 percent borrowed for farm inputs (up from 73 percent in November 2025)
75 percent used loans to cover labor costs (up from 47 percent)
That second figure is striking: Rising farm wages and post-pandemic labor shortages are forcing farmers to finance payrolls through debt—a dangerous cycle if harvests falter.
The CBK’s Silent Hand
The shift toward bank loans (now 33 percent) is no accident. The CBK has pursued sustained monetary policy easing, lowering lending rates across the economy. For the first time in years, commercial bank credit is becoming competitive with—and in many cases cheaper than—Sacco or microfinance products.
Yet the poorest farmers remain locked out. Bank loans still require collateral, credit history, and documentation that many smallholders lack. That vacuum is filled not by the Hustler Fund, but by chama contributions, relative remittances, and rotating savings groups—resilient, ancient, and stubbornly informal.