The State Department for Micro, Small and Medium Enterprises (MSMEs) Principal Secretary Susan Mang’eni has defended the Ksh8 billion allocated for the Financial Inclusion Fund (Hustler Fund) savings support, insisting it was never withdrawn from the National Treasury.
In a statement on Thursday the PS stated that the initial capitalization of the Fund was Ksh20.2 billion, with Ksh12 billion allocated towards lending and Ksh8 billion as counterpart funding to match the long-term (pension) savings for the Hustler Fund.
“By 30th June 2023, the period under audit review, the Fund was 7 months old, and the matching savings product was still being developed. It would have been imprudent for the Fund to draw down the money only to idle in the commercial banks.” He said
The PS stated that they finalized the development of the savings product undertook the first matching up during the 1st Anniversary of the Fund on 30th November 2023.
ALSO READ:
According to the Auditor General’s report, of the Ksh22.96 billion allocated to the Hustler Fund in the 2022/2023 budget, only Sh12 billion was spent.
The Financial Inclusion Fund (Hustler Fund) was launched on November, 30, 2022, with the mandate to innovate, develop, and deploy financial services and products that are affordable, accessible, and suitable for unserved and underserved individuals at the bottom of the pyramid, including credit, savings, insurance, and investment products.
The PS had appearing before the National Assembly’s Public Accounts Committee on Wednesday and Committee gave the department two weeks to provide additional information.
ALSO READ:
The PS said the Hustler Fund continues to positively impact the lives of many Kenyans, as intended, a total of Ksh71 billion has so far been disbursed to over 26 million Kenyans in both personal, group and bridge loan products. We have mobilized close to Ksh4.8 billion in savings, both voluntary and mandatory savings.
She assured Kenyans that the Fund remains committed to its objective and purpose of deepening financial and credit inclusion among the most vulnerable segments of the economy.
The government will continue to develop innovative financial products to address credit market failures and unlock access to affordable credit.
By Obegi Malack
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
