Photo: Irungu Nyakera/Courtesy
Former Kenya International Conference Centre (KICC) chair Irungu Nyakera has expressed concern over the management of the Nyota Fund, warning that it risks repeating the mistakes that plagued the Hustler Fund.
In a statement shared on X, Nyakera noted that while the Hustler Fund was designed to give youth affordable loans, political interference undermined its objectives.
“Over 20 million accounts were opened, more than KES 50 billion disbursed, and default rates rose above 50%. Defaulters were later removed from CRB by presidential decree, making those who paid feel foolish. That is how a good idea failed,” he said.
The Nyota Fund, conceived as a World Bank-supported youth empowerment initiative, is intended to help young Kenyans start and grow small businesses.
Nyakera cautioned that if the fund is treated as a political reward rather than a structured economic tool, it could face similar misuse.
“If it is sold as a political reward instead of an economic tool, borrowers will treat it like free cash just as they did Hustler Fund,” he stated.
He emphasized that for the Nyota Fund to make a meaningful impact, it must be insulated from political influence and administered with discipline and accountability.
Nyakera stressed that proper management and oversight are critical for the fund to achieve its goal of economic empowerment.
This warning comes as President William Ruto traverses the country, personally disbursing the Nyota funds to youth across various counties, raising concerns that political visibility could influence how the loans are perceived and utilized.
If managed properly, the Nyota Fund could become a vital tool for youth entrepreneurship.
But without strict oversight and depoliticization, Nyakera fears history may repeat itself, turning another promising initiative into a cautionary tale.