Wycliffe Oparanya, the Cabinet Secretary nominee for the Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs), has committed to overhauling the Hustler Fund through three key reforms.....CLICK HERE TO READ THE FULL ARTICLE>>>
Speaking while appearing before the Committee on Appointments for his vetting, Oparanya outlined his intention to ensure that the fund is effectively managed and structured.
Oparanya emphasised that, if confirmed, his primary focus would be to establish a robust legal framework for the Hustler Fund, along with creating a board and appointing staff to oversee its operations.
“If you approve my nomination, the first thing I would do is make sure that there is a proper legal framework, and ensure there is a board and staff to manage the fund,” Oparanya told members of the Committee on Appointments.
The nominee acknowledged his previous opposition to the fund but admitted that he had not fully understood its details until recently.
He now views the fund as a potential vehicle for poverty alleviation, provided it is managed properly.
“I know I was among the people who were opposing the hustler fund and I had not known the facts about the hustler fund until now that I have been briefed about the hustler fund. I think this fund, if well managed is a fund that will take our people from poverty,” he explained.
According to Oparanya, the Hustler Fund was originally launched without adequate legal structures.
This lack of framework has led to difficulties in managing and recovering funds.
He noted that the treasury had allocated Ksh13 billion to the fund, and due to repeated borrowing, the turnover had risen to Ksh55 billion.
Out of this, 21 million people had engaged in repeat borrowing, recovering Ksh43 billion.
However, Ksh12 billion remains unrecovered due to the absence of legal mechanisms to address this issue.
Oparanya also highlighted the importance of establishing a dedicated board and staff to ensure effective governance of the fund.
The former Kakamega Governor pointed out that while there is a strong digital infrastructure capable of tracking the unrecovered Ksh12 billion, the lack of a legal framework hampers efforts to retrieve these funds.
“The only problem is that this fund was launched in a hurry without proper legal structures in place and in the process the treasury allocated Ksh13 billion from the above amount; because of borrowing again and again, the turnover has gone to Ksh55 billion, and out of that 21 million people have been involved in the repeat borrowing, in the process they have been able to recover Ksh43 billion. It is a revolving fund,” he stated.
The nominee reiterated the fund’s original goal of addressing market failures at the grassroots level, a mission he believes is still relevant.
Oparanya’s proposed reforms are expected to bring a more structured approach to managing the Hustler Fund and enhance its impact on Kenya’s small businesses and entrepreneurs...CONTINUE READING>>
