Make Hustler Fund work

The removal of the Sh50 billion ceiling is the most significant tweaking of the Hustler Fund ahead of its Thursday launch.

The National Treasury has allowed the National Assembly to allocate more resources to this Financial Inclusion Fund.

The fund, which was a key election campaign item of President William Ruto’s United Democratic Alliance, has undergone a number of changes. Included in the final regulations is a provision for loan defaulters to pay a higher interest rate, 9.5 per cent, instead of the standard eight per cent.

Meant for Kenyans aged 18 and above and businesses with a turnover of up to Sh100 million, the regulations have been widened to include retirement benefits. The President has been pushing for an enhanced savings culture, proposing to substantially raise the monthly National Social Security Fund contributions.

From the initial promise of easy money to small-scale business owners and jua kali operators, it has become not so much different from other government financial support initiatives, including the Youth Fund. And President Ruto has made it known that there will be no free money to dish out to ‘mama mboga’, boda boda, and other ‘hustlers’, who have been salivating for it.

In fact, the preference now is savings and credit societies or other groups pitching for loans. The changes reflect an apparent recognition of the administrative challenges that lie ahead. However, this is a good initiative, which if prudently managed, should enable the beneficiaries to use the loans to finance their enterprises and improve their welfare.

The availability of easily accessible and affordable credit to businesses would be a godsend. It is crucial, therefore, that problems that have bedevilled similar initiatives in the past be prevented. They include the Youth Fund, which was embroiled in questionable dealings by its top officials. 

Programmes meant to support the public, unfortunately, end up being turned into graft havens for the benefit of a few crooked officials and their cronies. Another glaring shortcoming is the rampant mismanagement that results in the loss of public resources that could have been put to good use. Make the Hustler Fund a useful tool for economic prosperity.