President William Ruto has defended the performance of the Hustler Fund, saying the facility has issued more than Sh80 billion in loans and offered a way back into the credit system for borrowers who had previously been blacklisted.

In his State of the Nation Address delivered during a joint sitting of Parliament on Thursday, the President said the fund has become an important fallback for small traders, especially those who struggle to qualify for conventional loans.

Ruto said that so far, about seven million Kenyans have taken loans through the platform. He added that three million small businesses that had been shut out of formal lending now have access to credit again, while two million Kenyans borrow from the fund regularly.

He also noted that nearly 800,000 young entrepreneurs are now accessing loans of over Sh150,000 without being required to provide collateral something he argued was previously out of reach for many.

But Ruto also conceded that lending alone cannot guarantee long-term economic progress. He said this is the reasoning behind the Nyota programme, which the government is positioning as a broader youth empowerment effort focused on skills development, industry exposure and linking young people to real economic opportunities.

“The Hustler Fund has opened doors, but credit on its own is not enough,” he told lawmakers.

Earlier in his address, the President reflected on Kenya’s development path over the past six decades, saying the country has made notable gains but remains far from realising its full economic potential.

He urged a shift in public attitude, saying Kenya must break away from a culture of low expectations.

According to Ruto, the next phase of national development will demand a more ambitious mindset and a willingness to pursue higher standards in governance, economic reforms and innovation.

ALSO READ: Environment CS Deborah Barasa briefs UN Secretary General at COP30