Camila Batmanghelidjh asked why when poor children are given money 'it straight away becomes drugs money'.
But the former chief executive added cash-strapped youngsters often did not use handouts to get illegal substances - because 'they are given it for couriering'.
She was replying to Woman's Hour host Emma Barnett, who referenced a teenager who in 2015 boasted she spent Kids Company cash on weed.
Ms Batmanghelidjh also lashed out at Dominic Cummings as she claimed he briefed against her charity.
The heated interview was her first since she won a High Court disqualification battle to stop her holding company directorships as a result of her handling of the charity.