Members of Parliament (MPs) have urged the State Department for Micro, Small and Medium Enterprises (MSME) Development to strengthen financial literacy programmes before releasing additional funds under government empowerment initiatives.
The legislators said equipping beneficiaries with financial management skills would help improve the sustainability of the programmes by enabling recipients to manage loans and grants responsibly, while reducing long-term dependence on government support.
The concerns emerged during a sitting of the Committee on Trade, Industry and Investment as it considered the 2026/27 Annual Estimates of Revenue and Expenditure. The session was chaired by .
The committee reviewed budgetary allocations for key empowerment initiatives, including the NYOTA Programme and the Financial Inclusion Fund, popularly known as the Hustler Fund.
According to officials from the State Department, the NYOTA Programme has so far disbursed Ksh2.28 billion in start-up capital, making it the country’s largest direct youth enterprise capitalisation initiative.
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The Hustler Fund, on the other hand, has disbursed Ksh14.4 billion since its inception, reaching millions of Kenyans seeking access to affordable credit.
The State Department is now seeking an additional Ksh11.3 billion to expand the NYOTA Programme and onboard about 121,800 new beneficiaries. It has also requested a further Ksh5 billion for the Hustler Fund to ease liquidity constraints that have limited access to borrowing facilities, particularly under the bridge loan product.
The Principal Secretary Susan Mang’eni told the committee that the Hustler Fund requires stronger institutional support to sustain liquidity, broaden access to credit and support beneficiaries transitioning into the formal financial sector.
However, committee members raised concerns over the long-term sustainability of the fund, cautioning against continued reliance on budgetary allocations.
Lawmakers noted that the Hustler Fund was initially designed as a revolving fund supported by Exchequer seed capital, arguing that repeated government injections could undermine its intended self-sustaining model.
The MPs maintained that beyond capital injection, empowering beneficiaries with practical financial knowledge would be critical in ensuring prudent utilisation of the funds and improving repayment rates.
By Juma Ndigo
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