Gov't set to unveil Hustler Fund oversight board

Cooperatives and SMEs Cabinet Secretary Simon Chelugui has affirmed that the Hustler Fund board will be constituted in the coming week as various state agencies commence background checks into the recommended individuals who will sit on the body.

According to Chelugui, who spoke exclusively to Citizen TV, the names of the proposed position holders have been forwarded to relevant state agencies including the Directorate of Criminal Investigations (DCI), Ethics and Anti-Corruption Commission (EACC) and the National Intelligence Service (NIS) for proper background checks before the nominees are given the green light to oversight the hustler fund.

The advisory board’s establishment is in accordance with the Public Finance Management Regulations 2022 which was published as part of efforts by the government to strengthen the program.

"As part of my oversight responsibility sent to agencies involved, we will gazette the names and we will have a board by the end of next week," the CS told Citizen TV's Maryanne Nyambura on the sidelines of the Cabinet Secretaries' retreat on Nanyuki, Laikipia County on Thursday.

Kenyans saved over Ksh.600 million within 30 days of the Hustler Fund's establishment. As per regulations, the funds are banked in tier-one banks with the National Social Securities Fund (NSSF)  given the mandate to manage the funds.

"NSSF is onboard as an administrator while the custodial banks are tier 1. They are; KCB, COOP and Equity; the money is safe. Savings are held in KCB and Family bank; 70% of the savings will go to long-term pensions while the remaining 30% will go to short-term which subscribers can access in a year," said the CS.

This is good news for Kenyans who are operating small and micro-medium enterprises and members of cooperatives as the government embarks on launching the project's second phase, issuing loans to SACCOs and cooperatives of between Ksh.100,000 to Ksh.2.5 Million from February.

Since the fund's inception we have disbursed Ksh.13.3 billion to 17.4 million Kenyans who have so far repaid Ksh.5.5 billion," he said.

"Ksh.651 million has so far been saved on the fund and we are now discussing the launch of more products. Micro loans will be delivered through the cooperative model."

The source of money diverted to the loan project has been at the centre of political discussions with CS Chelugui saying a supplementary budget will be presented before Parliament when the House reconvenes in February as the Ksh.50 billion meant for the kitty was not allocated in the 2022/2023 budget.