Cooperatives and MSMEs Development Cabinet Secretary nominee Wycliffe Oparanya has expressed his reservations about President William Ruto’s Hustler Fund.
Responding to a question by Suna East MP Junet Mohamed on his views about it considering he has been one of the fierce critics of it, Oparanya noted that while its intention was good, it was hurriedly introduced.
“If well managed, the Fund would potentially be beneficial to alleviating people from poverty,” he said.
“The only problem with it was that it was launched in a hurry without adequate legal structures in place,” he added.
As a result, he said the Treasury allocated Sh13 billion and through the borrowing by Kenyans, the turnover has gone up to Sh55 billion.
“Out of that Sh55 billion, 21 million people have been involved in the repeat borrowing...in the process, they have been able to recover Sh43 billion and so in effect there is Sh12 billion which has not been recovered,” he explained.
He also affirmed that he did not have any facts about the Fund until when he was briefed about it as prepared for the vetting.
Oparanya further indicated “But, they have a strong digital infrastructure to trace where this Sh12 billion is but there is no legal framework to recover it, unlike Fuliza where when you borrow it is automatically recovered.”
If approved, Oparanya gave an undertaking to ensure there are robust regulatory regulatory mechanisms in place and also strengthen the capacity of the board.
Ruto launched the Financial Inclusion Fund on November 30, 2022, and was aimed at benefiting 15 million Kenyans.
He said the facility would also liberate people from predatory lenders.
“We are establishing a culture of saving, investment and social security,” he said.
He said the government was keen on creating opportunities for millions of people at the base of the wealth pyramid.
