Cooperatives and MSMEs Development Cabinet Secretary nominee Wycliffe Oparanya has opined the Hustler Fund is capable of alleviating Kenyans from poverty but the actualization was rushed.....CLICK HERE TO READ THE FULL ARTICLE>>>
Oparanya told the Parliament vetting committee chaired by Speaker Moses Wetangula insisted that the legal structure of the fund launched by President William Ruto’s administration needs to be considered.
“If hustler fund is managed well it will take people way from poverty. This fund was launched in a hurry without legal structure in place,” the Cabinet Secretary nominee said.
He told the house team that the turn over of the revolving fund had risen to Sh55 Billion up from the Sh13 Billion that was allocated during the initial disbursement of the fund.
“Out of that Sh55 billion, 21 million people have been involved in the repeat borrowing…in the process, they have been able to recover Sh43 billion and so in effect there is Sh12 billion which has not been recovered,” he noted.
The Former Kakamega Governor said he first duty once approved will be seeking brief on the fund to find the loopholes to ensure the fund is sustainable.
“But, they have a strong digital infrastructure to trace where this Sh12 billion is but there is no legal framework to recover it, unlike Fuliza where when you borrow it is automatically recovered,” Oparanya stated.
“I will make sure that proper structure are put in place so that we can recoup the money because it’s a revolving fund.Other Kenyans need to benefit for the fund,” he added.
The Hustler Fund, its management says, has advanced Sh50.3 billion to over 22.9 million Kenyans. Borrowers have also saved Sh2.2 billion.
The government has allocated Sh5 billion to the Financial Inclusion Fund popularly known as the Hustler Fund over the 2024-25 financial year even as Kenyans struggle to access funds from the kitty.
The money is for microloans at low-interest rates to ordinary Kenyans, whom the current regime notes have been sidelined by mainstream lenders or taken advantage of by mobile phone credit apps that charge exorbitant interest rates.
The Fund, one of President William Ruto’s pet projects, has according to the National Treasury allocated more than Sh20 billion in its first year of operation.
The Hustler Fund for groups and small businesses, which was launched in November last year as it celebrated first anniversary has attracted 53,694 groups that have borrowed Sh177.5 million and saved Sh8.9 million...CONTINUE READING>>
