According to Oparanya, the legal structure of the fund launched by President Ruto’s administration needs to be considered
The Hustler Fund, a flagship project under President William Ruto’s regime capable of alleviating Kenyans from poverty through quick and easy loans, haunted Wycliffe Opraranya, the Cabinet Secretary (CS) nominee for Co-operatives and Micro, Small and Medium Enterprises (MSME) Development who in the past criticised it for its unsustainability.
On Sunday, August 4, while appearing for vetting before the National Assembly Committee on Appointments, he admitted to opposing the fund but noted that he had not fully understood what it was all about.
According to Oparanya, the legal structure of the fund launched by President Ruto’s administration needs to be considered, given that it was launched in a rush, without such a structure in place.
“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.
President William Ruto being taken through how to access the Hustler Fund during its launch on November 30, 2022. /PCS
He told the house team that the turnover of the revolving fund had risen to Ksh55 billion up from the Ksh13 billion that was allocated during the initial disbursement of the fund.
“Out of that Ksh55 billion, 21 million people have been involved in the repeat borrowing…in the process, they have been able to recover Ksh43 billion and so in effect there is Ksh12 billion which has not been recovered,” he noted, alluding to the absence of legal mechanisms to address this issue.
Oparanya committed to overhauling the Fund, if approved, by establishing a robust legal framework for the Hustler Fund, along with creating a board and appointing staff to oversee its operations.
“But, they have a strong digital infrastructure to trace where this Ksh12 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 structures are put in place so that we can recoup the money because it’s a revolving fund. Other Kenyans need to benefit from the fund,” he added.
The Hustler Fund, its management says, has advanced Ksh50.3 billion to over 22.9 million Kenyans. Borrowers have also saved Ksh2.2 billion, with the government allocating Ksh5 billion to the Fund, formally named the Financial Inclusion 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 Ruto’s pet projects, has according to the National Treasury allocated more than Ksh20 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 its first anniversary has attracted 53,694 groups that have borrowed Ksh177.5 million and saved Ksh8.9 million.
A person using his smartphone. /FILE