Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has called for an additional allocation of Ksh.8.4 billion to the Financial Inclusion Fund, popularly known as the Hustler Fund, in the upcoming 2025/26 fiscal year budget.
Speaking before the National Assembly Departmental Committee on Trade, Industry and Cooperatives on Monday, Oparanya emphasized the importance of boosting the fund’s capacity to support small businesses and individuals who lack access to traditional credit facilities. He described the current allocation as insufficient to meet the fund’s growing demand.
The MSMEs State Department has been allocated Ksh.6.353 billion for the new fiscal year starting in June, despite requiring Ksh.25.997 billion. Of the current allocation, Ksh.1.724 billion is designated for recurrent expenditure, while Ksh.4.629 billion is meant for development. This leaves a funding gap of Ksh.19.644 billion.
Oparanya broke down the additional Ksh.8.4 billion request, stating that Ksh.8 billion is needed for credit disbursement, while Ksh.400 million would cover recurrent expenses. The Hustler Fund, launched in November 2022, has become a critical financial lifeline for Kenyans blacklisted by credit rating agencies, offering loans ranging from Ksh.500 to Ksh.50,000 at an affordable interest rate.
In the 2024/25 fiscal year, the fund disbursed Ksh.62 billion to Micro, Small, and Medium Enterprises (MSMEs), demonstrating its role in promoting financial inclusion and economic empowerment.
Oparanya also urged for increased funding for the Uwezo Fund, aimed at supporting women, youth, and disabled persons, and the Micro and Small Enterprises Authority (MSEA). He requested Ksh.168.6 million for the management of Constituency Uwezo Fund Committees and Ksh.450 million for fund re-engineering.
For the MSEA, he highlighted a need for an additional Ksh.542.6 million in recurrent funding, covering personnel emoluments, administrative costs, and operational expenses. Moreover, the authority faces a Ksh.450 million shortfall for equipping and operationalizing Constituency Industrial Development Centres, Centres of Excellence, and cold storage facilities.
As the budget deliberations continue, Oparanya’s appeal underscores the necessity of adequate funding to foster the growth and sustainability of Kenya’s MSMEs, empowering them to drive economic development and create job opportunities across the country.
