CS Oparanya wants Hustler Fund allocated additional Ksh.8.4B in new fiscal year

Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya wants an additional allocation of Ksh.8.4 billion to the Financial Inclusion Fund, the government-run credit facility commonly known as the Hustler Fund.

During a Monday meeting with the National Assembly Departmental Committee on Trade, Industry and Cooperatives, the minister said the credit program is among the government’s key initiatives he deems underfunded in the 2025/26 financial year budget.

Oparanya said overall, the MSMEs State Department requires Ksh.25,997,000,000 in the new fiscal year beginning June but has only been allocated Ksh.6,353,300,000—of which Ksh.1,724,300,000 is recurrent and Ksh.4,629,000,000 is development allocation.

He pointed out a Ksh.19,643,990,000 deficit in resource allocation.

“The Financial Inclusion Fund (Hustler Fund) requires an additional Ksh.8 billion for credit disbursement and Ksh.400 million for recurrent,” Oparanya said.

Launched in November 2022, the Hustler Fund targets Kenyans who could not access credit, having been blacklisted by various credit rating agencies.

It has been offering loans from Ksh.500 to as high as Ksh.50,000 at an eight per cent pro-rated basis or a daily rate of 0.002 per cent and recently introduced enhanced credit limits and a credit score which borrowers can use when seeking loans from banks and other lending institutions.

Oparanya told legislators on Monday some Ksh.62 billion was lent to MSMEs through the Hustler Fund in the 2024/25 financial year.

At the same time, his ministry also seeks additional funding for the women, youth and disabled persons-focused Uwezo Fund and the Micro and Small Enterprises Authority tasked with “promoting the development of competitive and sustainable Micro and Small Enterprises in Kenya.”

For the former, the minister said they need Ksh.168.6 million for Constituency Uwezo Fund Management Committees and Ksh.450 million for “re-engineering of the fund”.

“The Micro and Small Enterprises Authority requires additional recurrent allocation of Ksh.542.6 million of which Ksh.112 million is for personnel emoluments and Ksh.430 million for rent, board expenses and other administrative costs,” Oparanya added.

Additionally, he said the authority has a shortfall of Ksh.450 million for “equipping and operationalisation of constituency industrial centres (CIDCs), Centres of Excellence and cold storage facilities”.