The ministry of Cooperatives, and Micro, Small, and Medium Enterprises (MSME) has urged the National Assembly Budget Committee to allocate Ksh 8.4 billion more funds in the 2025/26 financial budget to run the credit facility known as the Hustler Fund.
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said this while appearing before the National Assembly Departmental Committee on trade, industry, and cooperatives to run the credit facility.
Oparanya said the credit programme was among the government’s key initiatives he thought was underfunded in the 2025/26 financial year budget.
He explained that the MSMEs State Department requires Ksh26 billion in the new fiscal year beginning June but has only been allocated Ksh 6.354 billion — of which Ksh1.73 billion is recurrent and Ksh 4.63 billion was development allocation.
“The Financial Inclusion Fund (Hustler Fund) requires an additional Ksh.8.4 billion for credit disbursement and Ksh.400 million for recurrent,” Oparanya said.
The Hustler Fund was established in November 2022 and targets Kenyans who could not access credit, having been blacklisted by various credit rating agencies.
The fund has been offering loans ranging from Ksh500 to Ksh50,000 at an interest rate of 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 disclosed that some Ksh 62 billion was lent to MSMEs through the Hustler Fund in the 2024/25 financial year.
The CS also said his ministry was seeking additional funding for the women, youth and disabled persons-focused Uwezo Fund and the Micro and Small Enterprises Authority as they are tasked with “promoting the development of competitive and sustainable Micro and Small Enterprises in Kenya,” he said.
“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 Ksh450 million for “equipping and operationalisation of constituency industrial centres (CIDCs), Centres of Excellence and cold storage facilities” he said.
Oparanya and Principal Secretary Patrick Kilemi, in a presentation underscored the importance of adequate budgetary allocations to fulfil the ministry’s mandate for all Kenyans.
The committee, chaired by James Gakuya (Embakasi North), expressed support for the proposals during the engagement.
