The second phase of the much awaited Hustler Fund aimed at helping small business owners access startup capital is finally out. The fund is also meant to establish a saving culture as well as encourage investments and social security among other benefits to Kenyans.
The terms and conditions have been greatly simplified to meet the financial needs of a very Kenyan. Individuals can access from Ksh500 to Ksh50,000.
The government has expressed interest to work with co-operatives to channel the funds to Kenyans. Should cooperatives accept the offer? Are they ready to channel the fund? If not, what do they need to do?
First and foremost, cooperatives should get in the frontline of supporting this agenda.
They should rise to the occasion and give a positive response to the offer from the government in the best possible way and prove they are the best vehicle to drive the government’s agenda.
The hustler fund accessibility involves a very short process and the period between funds application and cash disbursement is greatly minimized.
Through the hustler fund, both cooperatives and their members will benefit. Cooperatives will have the best opportunity to increase their businesses and expand their market share while mobilizing hustler fund credits.
To channel the funds, cooperatives should formulate friendly measures and strategies to make the agenda realizable by the target group who include potential and existing members.
Cooperatives should redesign their policies to accommodate the hustler’s fund initiative to co-exist normally with their other products and services.
They need to get to work by making the fund more popular and attractive to Kenyans who may consider joining cooperatives with the intention of accessing the funds.
Their new marketing language needs to be incorporated with hustler fund sensitization messages. The target groups of cooperatives should shift from their common bond members to youth groups, women groups and any other marginalized organized groups targeted to be the greatest beneficiaries of the hustler funds.
Cooperatives should be on the ground guiding and educating these target groups on entrepreneurial skills and financial literacy to ensure the purpose of this initiative is achieved. They should engage all possible avenues including incentives, simplified offers and online recruitment platforms to ensure they disburse majority of the hustler credits.
The hustler fund has been set with attractive features that include reduced turnaround time, simplified procedures to apply, very affordable securities and no discrimination regardless of who applies.
Cooperatives should therefore consider some features that accommodate the hustler fund specifications.
Since the hustler fund is aimed to solve the problems of frustrated Kenyans who have been queuing for hours and days with loan application forms and several evidence documents in banking halls seeking business startup capital, cooperatives need to embrace new technology in automation of services.
They need to reduce these traditional processes and come up with quicker methods of disbursing the fund. This calls for effective and fast response to enquiries hence the right operating systems need to be put in place to increase efficiency on all operations.
Cooperatives that wish to channel the hustler funds agenda should ensure they are financially sound to ensure their business is continuous. Their commitment in disbursing the funds should match their efforts in provision of other products and services.
All in all, Cooperatives should stick to their main objectives. The hustler fund mobilization is an added advantage to boost their businesses. This should not divert their attention of serving their members or developing more products as per the needs of the existing customers.
By CCOP Dorcas Nyambura Ndegwa
The writer works with one of the thriving Saccos in the country.
Get more stories from our website: Sacco Review
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates.
